NORTHERN NATURAL GAS COMPANY TAKES SIGNIFICANT STEP IN ENHANCING NEW SERVICES FOR ITS CUSTOMERS
NORTHERN NATURAL GAS COMPANY TAKES SIGNIFICANT STEP IN ENHANCING
NEW SERVICES FOR ITS CUSTOMERS
NEBRASKA, July 6 /PRNewswire/ -- Northern Natural Gas Company announced today that an order issued by the Federal Energy Regulatory Commission (FERC) approving the company's new services settlement is a significant step in enabling the company to meet the commission's and Northern's goals of unbundling services and enhancing equal access for all suppliers.
In the order issued June 26, 1992, FERC approved the new services settlement, with minor modifications, for an interim period while the company finalizes its restructuring proposal under FERC Order No. 636. The settlement has been pending since March 1991.
"While Northern will ask FERC to reconsider some of the modifications, the company will accept the modified settlement as an interim step," said Stanley C. Horton, president of Northern Natural Gas. "We will determine within the next two weeks which specific areas we will ask the FERC to reconsider."
In the new services settlement, Northern and its customers have agreed to certain revisions to its existing open access services and to enhance competitive opportunities on the system by, among other things, unbundling sales, transportation and storage services and establishing a gas inventory charge. New services will be implemented on Nov. 1, 1992 and will remain in effect until the company implements FERC Order No. 636 or Nov. 1, 1993, whichever is earlier.
Order No. 636 finalizes the structural changes in the FERC's regulation of the natural gas industry and will allow all natural gas suppliers to compete for gas purchases on an equal footing.
"The approval of the settlement will provide our customers substantial benefits until we implement services under FERC order No. 636," Horton stated. "It also will assure them firm entitlement for transportation, storage and sales services. This settlement will not postpone our plans to be in full compliance with Order No. 636 by the commission's deadline of November 1, 1993."
Northern Natural supplies and transports wholesale natural gas to 73 utilities serving approximately two million customers in 1,100 communities in 10 states. The company's pipeline system represents approximately 23,000 of the 38,000 miles of pipeline that Enron Corp. (NYSE: ENE) operates in the United States.
Enron Corp., America's leading natural gas company with more than $13 billion in revenues and about $10 billion in assets, operates the nation's largest natural gas transmission system; markets natural gas liquids, crude oil and refined products nationally and worldwide; owns 84 percent of Enron Oil & Gas Company, one of the country's largest independent (non-integrated) natural gas exploration and production companies; is one of the largest independent developers and producers of electricity in the United States and the United Kingdom, with extensive experience in combined heat and power installations; and is a leading non-regulated purchaser and marketer of long-term natural gas supplies.
/CONTACT: Diane Bazelides of Enron Corp., 713-853-6285/
(ENE) CO: Northern Natural Gas Company; Enron Corp. ST: Nebraska IN: OIL SU: LD -- NY063 -- 6780 07/06/92 17:25 EDT