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...
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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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