Law & Lawyers

LG&E Energy Corp. plans to reenter the natural gas marketing business by purchasing Dallas-based Hadson Corp. for $143 million. The deal includes all of Hadson's gas marketing operations, including 1,300 miles of gas-gathering systems, gas transmission systems, and gas processing and storage systems. Hadson's operations are located primarily in New Mexico, West Texas, Oklahoma, and Montana.

The two companies reached a definitive agreement, but the sale is subject to regulatory approval. The agreement marks LG&E Energy's second venture into natural gas marketing.

Consumers Power Co. has asked the Michigan Public Service Commission to approve a Special Competitive Service (SCS) rate to help retain industrial customers who threaten to leave the system. The SCS rate would be offered to customers who can obtain their power elsewhere and to new customers considering locating or expanding facilities in Michigan. "[A]pproval of this rate would grant Consumers Power the ability to negotiate special contracts with certain `at risk' large industrial customers which have competitive energy supply options," says Michael G.

Northern Border Pipeline Co. has filed for federal approval to extend its pipeline system 218 miles deeper into the Midwest, at a cost of $370 million. Sponsors say the project could be in service by November 1997.

The Federal Energy Regulatory Commission (FERC) has asked for comments on alternatives to traditional cost-of-service pricing for interstate natural gas pipeline transportation rates (Docket No. RM95-6-000). In response to many requests from pipeline companies to approve rates based on other pricing methods, some cost-based and some not, the FERC wants to develop a framework for analyzing alternative proposals.