As regulators continue to investigate industrywide restructuring as an answer to regional electric rate disparities and calls from large consumers for price reductions, the trend of dealing with...
Mojave Cancels Troubled Northward Expansion
Although the Federal Energy Regulatory Commission (FERC) issued a December 1995 order (Docket No. CP93-258-007) giving Mojave Pipeline Co. a green light to expand into California, the planned Northward Expansion Facilities have been tabled. The reason: A three-year delay caused by jurisdictional disputes between the FERC and the California Public Utilities Commission, as well as problems involving the FERC's contract-demand reduction policy, caused Mojave to lose its projected customer base. A recent customer-interest survey found that Mojave could no longer justify
the cost of moving forward with the project. The
loss of the expansion is a major blow to competition, because the pipeline would have offered gas customers in northern California their first opportunity
to choose a supplier other than Pacific Gas and Electric Co.
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