Unveiled

Columbia Transmission Communications (CTC), a wholly-ownedsubsidiary of Columbia Energy Group, unveiled plans to beginbuilding the initial leg of its telecommunications network Monday.The initial leg of the overall route will extend 260 miles from NewYork City to Washington D.C. using Columbia Gas Transmission’sright-of-way. It will be capable of providing voice, data and videosignal access to 16 million people. The company is developing plansto extend this network to 2,500 route miles with direct access to35 million people throughout the eastern United States, includinglines to Cleveland, Cincinnati and New Orleans. CTC said usingColumbia’s right-of-way will allow for a competitive, low-costfiber network. Columbia still needs to get landowner approval forthe lines, a company spokesman said, because the right-of-way wasapproved for pipeline use, not telecommunication wire.

At an annual meeting yesterday, Avista Corp. CEO T.M. Matthewsunveiled a new strategy that will include the purchase of 10% ofAvista’s common stock and will defer any major acquisitions soAvista can concentrate on the company’s existing energy business.

The renewable-fuel mandate in the Clinton administration’sretail electricity restructuring legislation that was unveiled lastweek may be seen by the natural gas industry as its worst nightmarecome true, but it does have a little bit of a silver lining.Although it sets aside 7.5% of gross annual generation output forrenewable fuel sources, which is at least triple the current level,the full effect of the mandate won’t be felt until the end of thenext decade at the earliest.

The Clinton administration’s retail electricity restructuringbill that was unveiled yesterday had some bad and not-so-bad newsfor natural gas. The bad news was that it requires a maximum 7.5%of annual electricity output to be generated by renewable fuelsources, but on the brighter side the full effect won’t be feltuntil the end of the next decade at the earliest.

FERC has unveiled its long-awaited final rule on expeditedcomplaint procedures, the focus of which is a “very innovative”fast-track process for resolving “highly time-sensitive” industrydisputes within 20 days after a response is filed. This compares toFERC’s target of up to 60 days for most standard complaints. TheCommission voted out the order notationally after its bi-weeklymeeting last Wednesday.

FERC has unveiled its long-awaited final rule on expeditedcomplaint procedures, the focus of which is its fast-track processfor resolving industry disputes within 20 to 60 days after aninitial complaint is filed. The Commission voted out the ordernotationally late Wednesday.

Interstate pipelines last week unveiled a “global” proposal onseasonal ratemaking and flexible terms and conditions of service atthe fourth industry pow-wow exploring major FERC gas initiativesand possible alternatives. Seasonal ratemaking, which would enablepipes and LDCs to recover more value for capacity when it’s ingreatest demand, is emerging as the industry’s front-runnerreplacement for the Commission’s much-criticized auction mechanism.

Three senators from leading energy-producing states unveiled amajor legislative plan Tuesday aimed at shoring up the domestic oiland gas industry in the face of depressed crude oil prices. Themeasure, titled the National Oil and Gas Security Enhancement Plan,seeks to provide producers with regulatory, leasing and tax relief.

The Clinton administration finally unveiled its long-awaitedrestructuring program for the electric industry yesterday in aseries of meetings with congressional leaders, stakeholders and themedia. The plan, which did not include specific legislativelanguage, represents a pragmatic position that its proponentsbelieve has the best chance of forging a compromise betweencompeting interests to arrive at comprehensive restructuringlegislation, if not in this session of Congress, then “very soon,”according to Energy Secretary Federico Pena.