Test

Crossroads Pipeline Co., a subsidiary of Nipsco Industries, saidThursday its open season to test shipper interest in the CrossroadsPipeline expansion exceeded the company’s expectations. Companiesexpressed interest in over 600,000 Dth/d for the proposedinterconnect. The open season for the Crossroads expansion beganFebruary 16 and ended March 31.

In separate announcements, Southern Company and PacifiCorptouted their readiness for the year 2000. Both said utilitysubsidiaries are testing systems by setting their clocks forward toreplicate conditions in a year 2000 environment. Generation,transmission and distribution systems are being tested by thecompanies.

Nicor Gas has filed a performance-based rate proposal with theIllinois Commerce Commission that would allow the company and itscustomers to save money if Nicor’s commodity, transportation andstorage costs are lower than a fluctuating benchmark. The benchmarkwill be based on a bushel of published gas price indexes, plusaverage transportation costs over the prior year and actual storagecosts. The PBR is expected to be in place starting next January.

The severe winter cold snap last week triggered unprecedentedprice spikes at spot points in the Pacific Northwest and NorthernCalifornia. PG&ampE Citygate prices hit $6.18/MMBtu on Monday andwere near $5 on Tuesday. Prices jumped to $11.05/MMBtu at Sumas onthe previous Friday for weekend flow, and on Monday and Tuesdaystayed north of $6.

Western Hub Properties, LLC (WHP) said subsidiary Lodi GasStorage is holding an open season Nov. 2-20 for 4 Bcf of workinggas capacity with an average of six cycles per year at its proposedgas storage facility in a depleted producing field near Lodi, CA,20 miles south of Sacramento. The facility would provide servicedirectly to Pacific Gas & Electric’s (PG&E) Line 401 nearthe Antioch Terminal in the heart of PG&E’s market. The companyplans to file an application in November to build the facility nextyear with service starting in November 1999.

The Alliance Pipeline project crossed one of its last remainingregulatory hurdles on Friday when Canada’s National Energy Boardconcluded it is not likely to cause significant adverseenvironmental effects provided 41 environmental recommendations areimplemented.

The proposed Alliance Pipeline, with the adoption of certainmitigation measures, would have “limited adverse environmentalimpact and would be an environmentally acceptable action,”according to a final environmental impact statement (FEIS) on theproject that was issued Monday.

The futures market continued to trade sideways to finish out theweek on Friday despite the large bearish sentiment, underpinned byfundamentals, that continues to dominant the market. The Septembercontract may have slipped only slightly to settle at $1.947, but itwas not for a lack of trying. Friday produced very choppy tradingthat had the prompt month bouncing between the $1.90 and $2.00.

Friday was a day of tests at the New York Mercantile Exchange.The market pushed lower on the open to test support at $1.81 onlyto rebound in the hopes of knocking out resistance at $1.875.However, both attempts failed and the September contract was leftto close at $1.833, almost unchanged for the day.