Producers and distributors last week indicated they generallybacked the thrust of FERC’s proposed rule to expand the blanketconstruction and abandonment certificate authority for pipelinesunder the Commission’s Part 157 regulations, but they – like thepipelines – saw some major problem areas with it.
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Articles from Week
INGAA Has ‘Major Concerns’ with Construction NOPR
A major pipeline group last week said there was “much to like”in the notice of proposed rulemaking (NOPR) that would, among otherthings, expand the blanket construction and abandonment authorityfor pipelines under FERC’s Part 157 regulations, but it also had”several major concerns.”
Freezing Temperatures Test Northwestern Supply
The severe winter cold snap last week triggered unprecedentedprice spikes at spot points in the Pacific Northwest and NorthernCalifornia. PG&E 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.
Gas Industry Gets Second FERC Extension for Christmas
FERC last week played Santa Claus to the natural gas industry bygranting its wish for a second extension of the deadline forcomments on the mega-notice of proposed rulemaking (NOPR)addressing short-term capacity issues and notice of inquiry (NOI)focusing on long-term transportation issues (RM98-10, RM98-12]. Butit did not close the door on those few who might want to filecomments under the current schedule.
Pipelines Would Expand on NOPR’s Blanket Certificate Authority
A major pipeline group last week said there was “much to like”in the notice of proposed rulemaking (NOPR) that would, among otherthings, expand the blanket construction and abandonment certificateauthority for pipelines under FERC’s Part 157 regulations, but italso had “several major concerns.”
FERC Okays Third Party Capacity for Northern Natural
FERC last week changed its tune and cleared the way for NorthernNatural Gas to acquire off-system, interruptible capacity fromthird-party pipelines. On rehearing of a July order, the Commissionfound that since Northern Natural sought the IT capacity to augmentits own operations, rather than for the purpose of re-marketing it,its request did not raise the concerns cited in a 1997 TexasEastern Transmission case. There, FERC feared that third-partypurchases could lead to preferential treatment for purchasingpipelines and could limit the capacity choices of other customerson third-party systems.
Consumers’ Pilot Program Exceeds Expectations
Surprising even itself, Consumers Energy announced last weekthat in only eight months of the Gas Customer Choice program,100,000 of its customers switched to an alternate supplier,reaching the limit for the first year of the plan. Out of the 10suppliers vying for Consumers’ market, Sempra Energy affiliateEnergy America-Michigan topped the list by signing 90% of theenrollments, a Michigan Public Service Commission (MPSC)spokesperson said.
Millennium Gains Ground; Upstream Links Filed
TransCanada Pipelines and Westcoast Energy subsidiary St. ClairPipelines last week filed with Canada’s National Energy Board tobuild the last remaining support components required fordevelopment of the Millennium Pipeline project, a 700 MMcf/d gasline designed to serve markets throughout the Northeast.
Peoples Energy Eyes Alternative Project to Wisconsin
Peoples Energy Chairman Richard E. Terry indicated last week hiscompany was talking with potential partners about building analternative pipeline project that would extend from the Chicago hubto serve the southern Wisconsin market.
Unbundling Moves Forward in Northern California
Giving gas unbundling efforts in California a shot in the arm,FERC last week approved a major agreement to restructure thelong-term transportation and gas sales arrangements that haveenabled Southern California Gas (SoCalGas) over the years toreceive imports of Canadian gas through its paper pipelineaffiliate, Pacific Interstate Transmission Co. (PITCO).