El Paso plans to resolve turnback dilemma

El Paso Natural Gas Co. has proposed a settlement designed to resolve its problems with California customers turning back much of its interstate gas pipeline capacity. El Paso filed a comprehensive rate settlement with the Federal Energy Regulatory Commission negotiated with and supported by customers representing about 95% of its firm pipeline capacity. FERC is expected to approve the settlement by late summer. A positive sign for the settlement was a statement of support from El Paso's biggest customer, Southern California Gas Co. On Jan. 1, SoCalGas reduced contract demand from El Paso by 300 MMcfd. Together with an earlier capacity "stepdown" by SoCalGas, that cut El Paso'...

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