FERC Actions on Northeast Projects ,
 NGI Summaries on several projects attached, please let me know if you have any questions or need additional information--SMC
NGI's Daily Gas Price Index 
published : December 20, 2001
Williams: MarketLink Phase 1 Is Open for Business 
Williams said Wednesday that it has completed the first phase of the Transco pipeline system's MarketLink expansion project, which will provide much needed incremental natural gas transportation capacity into the northeastern United States. The company added that this project represents the first interstate pipeline expansion completed to serve the New York metropolitan area since 1992. 
"Williams Gas Pipeline-Transco has provided reliable, economic gas transportation services to the Northeast for over 50 years and is committed to meeting the growing energy requirements in the region," said Gary Lauderdale, senior vice president and general manager, Williams' Transco pipeline. "This area, which includes Pennsylvania, New Jersey and New York, continues to experience a need for additional natural gas to serve residential, commercial and power generation facilities. MarketLink will help meet this need." 
The MarketLink project, which received the go-ahead from the Federal Energy Regulatory Commission on April 26, 2000, is being constructed in two phases. The first phase was completed and entered into service on Wednesday. It will deliver an incremental 166,000 Dth/d of natural gas. The second phase of the project, which will be placed in service in November 2002, will deliver an additional 130,000 Dth/d to the region. 
"Phase 1 of MarketLink will provide much needed capacity to the region in time for the winter heating season," said Mario DiCocco, Williams' Transco pipeline director of operations for the Princeton division, which covers New Jersey, New York and Pennsylvania. "We will begin construction of Phase II next spring." 
Williams pointed out that there are more than a dozen new gas-fueled power plants currently in the permitting process in New Jersey alone. Gas transported by MarketLink is expected to fuel new efficient power plants that are needed to meet the region's growing electricity needs and help meet Clean Air Act standards
NGI's Daily Gas Price Index 
published : December 20, 2001
Islander East Receives FERC's Preliminary Determination 
The Federal Energy Regulatory Commission (FERC) issued a preliminary determination on non-environmental issues to the Islander East Pipeline Co. LLC to build a 40-mile pipeline that will bring natural gas from Connecticut to Long Island, NY. 
Duke Energy Gas Transmission (DEGT) and KeySpan Energy Delivery Long Island (KEDLI) first announced its plans for the proposed line in January.  The proposed pipeline project will be equally owned by the two companies under Islander East Pipeline LLC. 
Originating from DEGT's Algonquin Gas Transmission's system, the pipeline --- made from 24-inch and 30-inch diameter pipe --- would extend from Connecticut across Long Island Sound to Wading River, NY, and other points on Long Island, where it would connect with KEDLI. The companies believe the time is right for Islander East because it would have access to almost every major supply basin in North America, including the recently developed Sable Island off the coast of Nova Scotia in Atlantic Canada. Its backers said it would be possible through Algonquin's proposed interconnection with Maritimes & Northeast Pipeline. 
The companies said that they expect to have the pipeline operating in 2003, initially providing 250,000 Dth/d of natural gas to the Long Island and New York City energy markets, enough to heat 600,000 homes. 
However, the Islander East project is not the only game in town. Following the Islander announcement, El Paso Corp.'s Tennessee Gas Pipeline Co. revealed a project that would provide up to 450,000 Dth/d of new transportation capacity from the company's interconnection with joint facilities of Maritimes & Northeast Pipeline LLC. and Portland Natural Gas Transmission System Co. in Dracut, MA, and terminate in Suffolk County on eastern Long Island.
Tennessee said its project will deliver to various local distribution companies and their facilities, including Yankee Gas Services, Connecticut Natural Gas, Southern Connecticut Gas and KeySpan Energy Delivery Long Island, as well as directly to proposed power generating plants along the way. 
Also throwing its hat into the ring back in April, Iroquois Gas Transmission System LP announced an open season yesterday for Zone 2 firm transportation capacity for delivery on its proposed Eastern Long Island Expansion.
Iroquois proposes to construct 20 miles of 24-inch diameter marine pipeline from Milford, CT, to Shoreham, Long Island, and points farther inland as the market demands. 
NGI's Daily Gas Price Index 
published : December 20, 2001
Maritimes Phase III, HubLine, Iroquois' Eastchester Receive Final FERC Nods 
FERC issued final certificates Wednesday morning to the Maritimes & Northeast Pipeline Phase III expansion project and related HubLine expansion by Algonquin Gas Transmission. The integrated expansions will increase transportation of Atlantic Canadian gas to the Boston area. In addition, Iroquois' Eastchester project received a final green light from FERC. The $174 million Eastchester project will add 230,000 Dth/d of capacity to the Iroquois system to increase deliveries mainly to New York City power generators. 
The Federal Energy Regulatory Commission denied rolled-in rate treatment for Eastchester, stating that, contrary to Iroquois' claims, the project's cost actually would exceed its revenues, requiring existing firm shippers to subsidize a portion of the project. Iroquois had said the project would provide $2.8 million in annual net financial benefits, but FERC found that it actually would cost existing shippers $2.9 million. As a result, the Commission left the rates to be settled in a future proceeding. 
The 33-mile pipeline extension will connect Iroquois' existing system in Suffolk County with Consolidated Edison's system in the Bronx. Iroquois hopes to complete the extension by November 2002. It signed 10-year precedent agreements for the capacity with five shippers: Virginia Power Energy Marketing (20,000 Dth/d), Mirant New York Management (60,000), KeySpan Ravenswood (60,000), Consolidated Edison Energy (30,000) and Orion Power Holdings (60,000). ConEd, KeySpan and Orion will use their capacity to serve power generation load. FERC also said the pipeline must finalize its agreements with shippers prior to moving forward with construction. 
Iroquois Gas Transmission System is a partnership of 10 U.S. and Canadian energy firms and is owner of a 375-mile interstate pipeline extending from the U.S.-Canadian border at Waddington, NY, through western Connecticut to Long Island, NY. 
The companion expansion projects of Maritimes & Northeast and Algonquin call for Maritimes to construct an extension in a southeasterly direction through several Massachusetts counties to the East Coast where a new Algonquin line would connect and extend offshore down the coast through Boston Bay to a connection with Algonquin's existing system at Weymouth on the south side of Boston Harbor. The two pipeline projects are designed to supply up to 230,500 Dth/d to the gas-starved New England region and are targeted for service by November 2002. 
The so-called Phase III extension of the 600-mile Maritimes pipeline, which imports Atlantic Canadian gas to the Northeast from the Sable Offshore Energy Project offshore Nova Scotia, will include 24 miles of 30-inch diameter pipeline and one mile of 24-inch diameter pipeline, extending from Methuen, MA, through a number of counties to a connection with Algonquin's proposed extension in Beverly, MA. The project, which has an estimated price tag of $133.9 million, would provide firm transportation service to serve growing markets on the east end of Algonquin's system. 
Algonquin's HubLine project, which has a projected cost of $127 million, will include about 29 miles of 24-inch diameter pipeline, extending offshore from an interconnection near Beverly with Maritimes' proposed Phase III project to an interconnection with Algonquin's existing I-9 lateral in Weymouth. Algonquin also plans to build a 5.4-mile, 16-inch diameter lateral from the proposed pipeline to a wastewater treatment plant owned by Massachusetts Water Resources Authority on Deer Island.
robert.superty@enron.com, victor.lamadrid@enron.com, 