utilities

With the winter heating season totaling 14% warmer than normalso far, gas utilities will be hard pressed to prevent seriousearnings declines. As a result, Nicor ran out and bought a weatherinsurance policy for fiscal year 2000 that is designed to provideprotection from the financial impact of unusually warm weather.

In accordance with Ohio’s electric industry competitionlegislation, Cinergy’s Cincinnati Gas & Electric Co. (CG&E)filed its transition plan with the Public Utilities Commission ofOhio (PUCO) yesterday. The plan extends a six-year rate freeze foranother six years, but also requests that the utility recover itsstranded costs through the frozen rates. Overall, the utility,which serves 650,000 electric customers in southwestern Ohio, saidthe plan would cause a $77 million reduction on residentialcustomers’ bills. The new law requires PUCO to rule on the plan byOctober 31.

As polluting utilities were preparing to fight a broadEnvironmental Protection Agency emissions-reduction edict issuedlast week, they were hit with an appeals court decision upholdingan earlier EPA order on the same subject — nitrogen oxides (NOx)emissions.

As polluting utilities were preparing to fight a broadEnvironmental Protection Agency emissions-reduction edict issuedlast week, they were hit with an appeals court decision upholdingan earlier EPA order on the same subject – nitrogen oxide (NOx)emissions.

Columbia Gas of Ohio and the Public Utilities Commission of Ohio(PUCO) announced a renewed rate freeze last week that Columbia saidwill pave the way for its popular customer choice program tocontinue until 2004. The agreement, which the company said modifiedand extended a five-year deal struck in 1994, was negotiated byColumbia, the Ohio Consumer’s Counsel (OCC), natural gas marketersand a coalition of Columbia customer groups.

Columbia Gas of Ohio and the Public Utilities Commission of Ohio(PUCO) announced a renewed rate freeze yesterday that Columbia saidwill pave the way for its popular customer choice program tocontinue until 2004. The agreement, which the company said modifiedand extended a five-year deal struck in 1994, was negotiated byColumbia, the Ohio Consumer’s Counsel (OCC), natural gas marketersand a coalition of Columbia customer groups.

Watertown Municipal Utilities chose Tenaska Marketing Venturesof Omaha, NB, to be its gas transportation and fuel manager for thenext five years. Watertown will buy about 8 Bcf of gas from Tenaskaover the contract term. The utility recently finished constructinga five-mile pipeline directly connecting it to Northern BorderPipeline. Previously, the utility moved gas on Northern Natural.Thecombined gas, electric and water utility serves about 20,000 innortheast South Dakota.

Columbia Energy Group is planning some significant investmentsin wholesale power generation and possibly foreign utilities andhas filed a request with the Securities and Exchange Commission toexpand its authority under the Public Utility Holding Companies Actto make such investments. Columbia told the commission it wants tobe able to invest an amount equal to 100% of its annual earnings.It currently is authorized to invest only 50% of its earnings insuch projects.

In an ongoing effort to reduce power costs from existing PublicUtilities Regulatory Policy Act (PURPA) contracts, Puget SoundEnergy announced yesterday an agreement to buy a 160 MW gas-firedcogeneration plant in Bellingham, WA, from Encogen for $164million. Puget Sound said buying the facility eliminated its secondlargest PURPA contract, a deal which required it to pay Encogenfixed and escalating fees through mid-2008 for the plant’s output.