FERC’s attempt at a “Solomonic solution” to the lingering feudover the function of Sea Robin Pipeline — dividing the offshoresystem in two, with the smaller part being declared transportationand the larger section found to be gathering-apparently has failedmiserably. Both pipelines and their customers have cited shortfallswith the decision and are seeking rehearing. If the Sea Robinruling is upheld by FERC on rehearing, the case — which has beenpending since 1995 — would be headed back to the courts for asecond time.
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Citizens Exits Distribution, says ‘Hello’ to Telecom
Seeking increased growth opportunities, Citizens Utilities ofStamford, CT, is getting out of the business of distributing gas,electricity and water in order to invest in telecommunications. Thecompany is divesting its Public Services distribution businesses,as well as its wastewater treatment business. As previouslyannounced, Citizens plans to fund $2.3 billion of telephone accessline acquisitions with sale proceeds.
Industry Briefs
Northern States Power Co. issued a request for proposals (RFP)for up to 1,200 MW of power generation capacity and associatedenergy for a period of 10 years, beginning sometime between May 1,2003, and May 1, 2005. NSP will use the additional resources tomeet increased retail customer demand. NSP is seeking peaking,intermediate and base-load resources. The RFP is open to allsources of power, including renewable resources. NSP will selectwinning proposals based on cost, environmental impact and deliveryguarantees. Before awarding the contract(s), NSP will submit theevaluation of the proposals to the Minnesota Public UtilitiesCommission (MPUC) for review. For a copy of the RFP or moreinformation, contact David L. Zuck at (612) 330-6452. He also maybe reached via fax, (612) 330-5868, or e-mail,david.l.zuck@nspco.com.
Storage Hype Lifts Futures to Retest $2.60
Fueled by follow-through buying on the heels of Monday advances,the futures market ambled higher yesterday as traders weighed theimpact of bullish news expected to be released this afternoon. TheSeptember contract finished up to 2.3 cents at $2.598. Impressiveadvances were also seen in the out months with the October,November and December contracts notching similar gains.
KN Names Assets to be Sold, Reports Loss for 2Q
KN Energy has been cleaning house and started a corporate yardsale yesterday with tags on everything but the kitchen sink.Although it wouldn’t estimate the total value of the assets beingsold, the list is long and encompasses properties and assets innearly every division of KN’s operations.
Western Resources Threatens to Exit Kansas After KCC Decision
Western Resources yesterday threatened to cut its losses andsell the company to a national energy conglomerate because of adecision by the Kansas Corporation Commission (KCC) to reopen thedocket on its merger with Kansas City Power and Light. The KCCissued an order late Monday to reopen the merger docket because ofa stipulation and agreement Western signed with the Missouri PublicService Commission staff and others in the Missouri docket.
CMS-MST Bolsters Canadian Energy Services
CMS Marketing, Services and Trading (CMS-MST) expanded itsCanadian presence yesterday as PremStar Energy, Canada, a CMS-MSTaffiliate, acquired ECNG Inc., an independent energy consultingfirm, from El Paso Energy Marketing Canada Inc. Terms were notdisclosed. PremStar worked together with a group of formerexecutives from ECNG to acquire the firm.
Andersen: Revenue-Spending Contradiction in 1998
While for a third consecutive year U.S. gas reserves stood flatat around 107 Tcf, Canadian reserves grew 8% to 32.2 Tcf in 1998,according to Arthur Andersen. That’s just one finding of theconsultant’s 1999 edition of Global E&P Trends, releasedyesterday.
Battle For Southwest Gas Rages On
Oneok Inc. of Tulsa, OK, filed to hold Southern Union incontempt for violating a federal preliminary injunction preventingit from attempting to influence a shareholder vote on the merger ofOneok and Southwest Gas Corp.
Cogen Market Growth Slows, GRI Says
While natural gas has captured the lion’s share of the expandingcogeneration market in recent years, “the phenomenal growth of[cogeneration in] the past was a one-time event resulting from aunique combination of regulatory and market changes,” according tothe Gas Research Institute’s Marie Lihn.