The Public Service Commission of Wisconsin Tuesday approved gassupply agreements between a coalition of state utilities and fourCanadian suppliers for up to 105 Bcf/year for five years to bedelivered through the proposed Viking Voyageur pipeline.

The PSC approval points toward strong market support for VikingVoyaguer in its competition with other Canadian import projects,according to the Wisconsin Capacity Coalition which includesMadison Gas & Electric, Wisconsin Gas, Wisconsin Public ServiceCorp., and Wisconsin Fuel and Light. “This clears a major hjurdlefor us in our attempts to obtain competitive gas transportationservices and gas supply in the state,” said Mark Maranger,coalition chairman.

Contract provisions were not made public, but the coalition saidthey ‘will result in a significant premium above Chicago hubprices. However, at the same time the new arrangements will helpreduce the cost of gas to Wisconsin citizens” delivered throughexisting pipelines. Suppliers are Crestar Energy Marketing,PanCanadian Petroleum, Amoco Canada Marketing, and TransCanada GasServices.

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