Upgrades

Wisconsin Energy (WE) is eyeing natural gas distribution infrastructure upgrades as one of several capital investment opportunities in the next two to four years, CEO Gale Klappa told financial analysts Thursday in reporting 2Q2011 earnings of $98 million (41 cents/share), compared with $88 million (37 cent/share) in 2Q2010. Current efforts nationally to update gas pipeline rules and regulations are expected to create the need for more investment in WE’s gas pipeline system, and the company expects to also have the opportunity to buy some existing gas-fired cogeneration facilities that the state of Wisconsin owns and operates. “We still have to deal with aging gas and electric infrastructure,” said Klappa. “I am very confident we will be seeing additional capital spending in the 2013-14 time frame related to additional regulation on gas distribution and pipeline safety. Those issues are being debated right now by FERC [the Federal Energy Regulatory Commission] and the Congress.”

The PJM Interconnection Board on Friday authorized $2.9 billion in electric transmission upgrades and additions, including two major new transmission lines that would carry electricity from the Appalachian Basin and the Midwest to power-constrained East Coast markets.

Driven by continuing high wholesale natural gas costs and demand for infrastructure upgrades for both gas and electric utility distribution systems, Bellevue, WA-based Puget Sound Energy (PSE) late Wednesday filed with state of Washington regulators for a combined gas and electric rate increase collectively totaling $200 million in added revenues. This is PSE’s second general rate case filing in less than two years, and the regulatory review process may take up to 11 months.

Due to its Washington Ranch storage facility being scheduled for annual Department of Transportation inspections, modifications to storage field piping and upgrades to compressor units this month, El Paso said there will be no injections or withdrawals Sept. 11-18. Also, injections will be limited to about 75 MMcf/d Sept. 19-30, but withdrawals will be possible during that time. These projects will cause El Paso to lose a large degree of operational flexibility, “making it critical that all parties scheduling gas on our pipeline manage their volumes carefully to balance receipts and deliveries daily,” the pipeline said. In order to maintain system integrity, it may place nonperformance caps on receipt/delivery pipeline interconnects, and is prepared to declare a Strained Operating Condition or Critical Operating Condition if necessary.

FERC last Monday issued a certificate to Transwestern Pipeline to upgrade existing compressor facilities on its Panhandle Lateral, which runs through parts of New Mexico, Texas and Oklahoma.

FERC on Monday issued a certificate to Transwestern Pipeline to upgrade existing compressor facilities on its Panhandle Lateral, which runs through parts of New Mexico, Texas and Oklahoma.

FERC on Monday issued a certificate to Transwestern Pipeline to upgrade existing compressor facilities on its Panhandle Lateral, which runs through parts of New Mexico, Texas and Oklahoma.

Increased interstate pipeline capacity, new storage capacity and other in-state natural gas infrastructure upgrades are just some of the possibilities outlined for the California gas market between now and 2006, according to panel assembled Tuesday at the first day of a two-day workshop in San Francisco examining “Natural Gas Market Outlook, 2006-2016.” The workshop was co-sponsored by the California Energy Commission and the California Public Utilities Commission.

Increased interstate pipeline capacity, new storage capacity and other in-state natural gas infrastructure upgrades are just some of the possibilities outlined for the California gas market between now and 2006, according to panel assembled Tuesday at the first day of FERC’s two-day workshop in San Francisco examining “Natural Gas Market Outlook, 2006-2016.”