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Enbridge Gas New Brunswick (EGNB) has entered into a three yeardeal whereby Green Bay, WI,-based WPS Energy Services will assumecontrol of EGNB’s transportation capacity on Maritimes andNortheast Pipeline.

In seeking FERC certification as a regional transmissionorganization (RTO) yesterday, PJM Interconnection LLC and its ninetransmission owners claimed the regional independent systemoperator (ISO) already possesses the characteristics and functionsrequired by the Commission’s Order 2000 to qualify as an RTO.

The Federal Energy Regulatory Commission yesterday handedload-serving entities (mostly electric utilities) that serve theNew York City power market a present — a targeted rebate of $3.75per kilowatt month.

FERC has rejected a complaint that called for the New YorkIndependent System Operator (NYISO) to change its market rules andsoftware by Aug. 1 to permit bidding by non-physical entities(power marketers) in the electric market there.

After agreeing to unload its electric subsidiary last week to OrionPower Holdings for about $200 million plus the assumption of debt,Columbia Energy Group announced that it has found a buyer for itselectric subsidiary’s interests in four power generation QualifyingFacilities (QF). The interests, which were excluded from the Oriondeal, will be sold to a partnership between Morristown, NJ,-basedDelta Power Co. and John Hancock Life Insurance for an undisclosedamount (see Daily GPI, Oct. 3).

FERC yesterday upheld its March decision on remand in which itdisclaimed jurisdiction over a four-mile, six-inch line of KNWattenberg Transmission LLC that serves two industrial customers inFort Morgan, CO. The Commission asserted jurisdiction over thelateral in a November 1997 ruling, but the U.S. Court of Appealsfor the Tenth Circuit remanded the decision two years later. LastMarch, FERC vacated its controversial decision upon acknowledgingthat the line met the qualifications for a Hinshaw exemption and,therefore, was subject to regulation by the Colorado PublicUtilities Commission.

Northwest is lifting today the Stage III Declared EntitlementPeriod for the northern half of its system that went into effect lastFriday (see Daily GPI, Oct. 9). However,the pipeline gave warning of the potential for subsequent entitlement,which allows it to impose a new entitlement after the close of theconfirmation process for the coming gas day. In addition, Northwestsaid effective today it will be necessary to limit the Kemmerer (WY)and possibly the Meacham (OR) and/or Green River (WY) Stations toprimary nominations only in order to make space for Northwest to moveClay Basin storage gas to the Jackson Prairie storage facility. Thepipeline explained the situation this way: “Throughout SeptemberNorthwest experienced continuous customer drafting. To compound theproblem, the price difference between Canadian and Rockies gassupplies has been significant, causing Kemmerer throughput to remainat or above capacity. The price difference threatens to continueindefinitely. If the drafting and unprecedented use of maximumKemmerer capacity persists, depleting Jackson Prairie and making ClayBasin unavailable for use in Northwest’s market areas, customersshould be advised that Northwest must continue to use the toolsavailable to maintain system integrity, including entitlement,alternate gas allocation and operational flow orders.”

Even with much of its cold weather support disappearing, thecash market still found cause for moderate bullishness Wednesday.But that’s expected to pale in comparison to the fireworks thatsources were predicting for today after the screen exploded withgains of more than 35 cents in both the November and Decembercontracts following AGA’s below-expectations storage report.

Following on the heels of gains achieved in the Tuesday eveningAccess trading session and amid buying frenzies both before andafter the release of fresh storage data, natural gas futures spikedsharply yesterday as traders reacquired long positions liquidatedover the past two weeks.