System

Yankee Gas Services Co. the local distribution arm of YankeeEnergy System Inc., has reached an agreement for TransCanada GasServices Inc. (TCGS) to supply gas, pipeline capacity and storageoptimization for three years. Yankee Gas is the largest LDC inConnecticut, delivering more than 50 Bcf of gas annually to 68communities and 183,000 customers.

ANR Pipeline has yet to decide whether to proceed with expansionof its Eugene Island system in the Gulf of Mexico in the wake of aFERC order upholding a previous decision that approved the projectbut put ANR at risk for its cost. “I think all I can say at thispoint is we’re continuing to review the order and consider ouroptions,” an ANR spokesman said Friday.

Yankee Gas Services Co. the local distribution arm of YankeeEnergy System Inc., has reached an agreement for TransCanada GasServices Inc. (TCGS) to supply gas, pipeline capacity and storageoptimization for three years. Yankee Gas is the largest LDC inConnecticut, delivering more than 50 Bcf of gas annually to 68communities and 183,000 customers.

Texas Eastern Transmission (Tetco) has made big strides towardbecoming a more competitive pipeline system in eastern markets. Thecompany agreed last week to pay three producers $496 million tosettle all of its remaining gas purchase contracts. Shippers willbear about $396 million of the costs, which is about $100 millionless than a payment cap set in 1993 as part of a restructuringsettlement.

Florida Power &amp Light Co. announced plans last week toaccelerate by one year an expansion of its power generating system.The expansion will take place in phases with the first phase beingcompleted in 2001. In total, the expansion will add 2,500 MW of newgas-fired generation capacity at three power plant locations overthe next eight years with the majority coming on line by 2003.

San Francisco-based PG&E Corp. leap-frogged the continent tocomplete the $1.59 billion acquisition of New England ElectricSystem’s generating business, including hydro and gas-fired plantswith 5,100 MW of capacity. The acquisition was made by PG&Esubsidiary U.S. Generating Co.

Fearing a weekend threat to system integrity from oversupply,Sonat implemented an OFO Type 6 effective Saturday (July 25) untilfurther notice. The OFO carries tiered penalties of up to $15/dthfor positive imbalances exceeding 8% of allocated deliveries.

The D.C. Circuit Court of Appeals remanded an order in whichFERC denied Iroquois Gas Transmission System L.P the recovery oflegal costs stemming from the criminal and civil investigationsinto environmental violations associated with the construction ofpipeline facilities in the early 1990s.

After counseling from some of its board members, the CaliforniaIndependent System Operator (ISO) has decided not to seek relieffrom the Federal Energy Regulatory Commission for an unprecedentedprice spike it experienced July 9 for reserve power in California’srestructured electricity markets, according to an ISO spokesperson.