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TGPL TO APPEAL FERC DECISION IN TRANSITION COST PROCEEDING

      TGPL TO APPEAL FERC DECISION IN TRANSITION COST PROCEEDING
    HOUSTON, Jan. 16 /PRNewswire/ -- Transco Energy Company said that its subsidiary, Transcontinental Gas Pipe Line Corporation (TGPL), will appeal the Federal Energy Regulatory Commission's (FERC) final order on the company's Transition Cost proceeding.  The FERC's decision, issued Jan. 15, requires that TGPL forego recovery of approximately $76 million of gas costs, plus approximately $23 million in interest.  Transco recorded a charge to its third quarter earnings to increase a previously established reserve for the potential impact of this order.  As a result, there will be no additional charge against Transco's earnings.
    Transco President and Chief Executive Officer John P. DesBarres said, "We plan to appeal the decision, since we believe that the actions taken by TGPL and its affiliates in 1985 and 1986 did not violate the law or FERC regulations, and in fact, were beneficial to our customers and producers.  Our appeal will establish that the company's actions were consistent with the FERC's policies of resolving take-or-pay contract issues and increasing customer access to market-responsive gas supplies and that we were entitled to pass through to our customers the costs incurred."
    Transco Energy Company (NYSE: E), through its interstate gas pipeline systems and other gas service companies, transports and sells natural gas, predominantly to markets in the eastern and midwestern United States.  Transco also develops independent power generation facilities and new energy technologies; explores for and produces oil and natural gas in the Gulf of Mexico; and mines and markets coal.
    -0-        1/16/92
    /CONTACT:  Katherine K. Putnam, 713-439-2455, or Donato J. Eassey, 713-439-4176, both of Transco Energy Company/
    (E) CO:  Transco Energy Company ST:  Texas IN:  OIL SU: SM -- NY019 -- 0404 01/16/92 10:15 EST
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Publication:PR Newswire
Date:Jan 16, 1992
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