Understanding

Owners of transmission systems stretching across several Southeastern states have signed a memorandum of understanding to develop a regional transmission organization (RTO) for the region. If the transmission owners prove successful in their efforts to develop the RTO, it would be one of the nation’s largest, covering more than 39,000 miles of transmission lines with an investment in assets in excess of $6 billion.

With the understanding that it’s no secret the state of Floridais in dire need of new natural gas-fired electric generatingfacilities and increased gas supply to support them in the nearfuture, Enron last week disclosed plans to construct an estimated$300 million liquefied natural gas (LNG) terminal and facility inthe Bahamas and a 90-mile gas pipeline from the facilities to thecoast of Florida, said Habiba Bayi, a spokeswoman for the company.

With the understanding that it’s no secret the state of Floridais in dire need of new natural gas-fired electric generatingfacilities and increased gas supply to support them in the nearfuture, Enron reported plans to construct an estimated $300 millionliquefied natural gas (LNG) terminal and facility in the Bahamasand a 90-mile gas pipeline from the facilities to the coast ofFlorida, said Habiba Bayi, a spokeswoman for Enron.

Northern Border Partners have entered into a letter of understanding with Enron North America (ENA) to purchase gas gathering facilities in the Powder River and Wind River Basins in Wyoming for almost $200 million. Included in the acquisition is Enron Midstream Services, which has ownership interests in Bighorn Gas Gathering, and ENA subsidiaries that hold interests in Fort Union Gas Gathering and Lost Creek Gathering. Upon completion of the transaction, Northern Border Partners will own and operate the assets, and will provide gathering and transportation services. ENA will still supply gas purchase and sales, finance, and risk management along with producer outsourcing services.

Northern Border Partners have entered into a letter ofunderstanding with Enron North America (ENA) to purchase gasgathering facilities in the Powder River and Wind River Basins inWyoming for almost $200 million.

The Mid-Continent Area Power Pool (MAPP) executive committeeapproved the execution of the memorandum of understanding with theMid-America Interconnected Network (MAIN) to merge the reliabilityfunctions of the two organizations. The MAIN Board of Directorsapproved the memorandum on April 7. The goal is to have a jointregional reliability organization (RRO) in place by November. Theorganization will ensure standards compliance through auditing,planning and operating reserve requirements and will establishsanctions procedures to enforce compliance with reliabilitystandards. MAPP is an association of more than 90 electricutilities and other electric industry participants. MAIN is one of10 other regional reliability councils under the North AmericanElectric Reliability Council.

Maybe it was because it was Thanksgiving, but FERC was in a veryunderstanding mood last week. It agreed Natural Gas Pipeline Co.of America (NGPL) had failed to justify the need for a proposedtariff change that would hold a “party tendering gas” liable forpipeline facility damages that are caused by lower-quality gasentering NGPL’s system. The Commission, however, didn’t reject theproposal.

NICOR and GE Power Systems signed a memorandum of understanding,calling for GE to supply NICOR with GE-Elliott Energy Systems (EES)turbo alternators for sale to customers in the midwestern UnitedStates.

NGC Corp. and Texaco signed a memorandum of understandingyesterday to create a new joint venture company that will useexisting gas liquids pipelines to create a 290-mile, bi-directionalnatural gas liquids (NGL) transportation system, extending fromSorrento, LA, to Mont Belvieu, TX.