FYI

Tuscarora Proposes to Expand Nevada Pipe 
Tuscarora Gas Transmission Co. wants to expand its 229-mile pipeline system extending from Malin, OR, to capture a growing Nevada market. Under an application filed with the Federal Energy Regulatory Commission, it would add three compressor stations and a 14-mile pipeline extension to nearly double capacity to 220 MMcf/d, up from its current 124 MMcf/d. The in-service date, if approved, would be late 2002. 
"The expansion of the Tuscarora Pipeline is a key ingredient in the continued economic prosperity of northern Nevada and will meet the growing natural gas needs of new and existing customers well into the future," said Greg Galbraith, director of marketing and transportation for Tuscarora Gas. 
The expanded capacity would serve two new power generation facilities in Nevada near Tracy and Wadsworth. Duke Energy plans to construct a 540 MW plant near Wadsworth, and Morgan Stanley is now constructing the 360 MW Naniwa Energy facility near Tracy. 
The added capacity also would supplement the growing gas distribution needs of Sierra Pacific Power Co. and Southwest Gas Corp., which collectively distribute natural gas to all of northern Nevada and portions of northern California. 
If FERC approves the application, Tuscarora said it would begin construction in April 2002 and begin service by the end of that year. The $60 million project expansion would be supported by long-term, firm transportation contracts ranging from 10-to-15 years that are contingent upon completion, said Tuscarora. The contracts would meet new power generation loads as well as growth in existing local distribution company markets. 
"The contracts that underpin this project demonstrate that there is a growing demand for natural gas in the markets served by Tuscarora and that Tuscarora is well positioned to capture that growth," said Ron Turner, CEO of TC PipeLines GP Inc., a subsidiary of TC PipeLines LP, which owns 49% of Tuscarora. It also is a subsidiary of TransCanada. 
The pipeline was constructed in 1995 in a partnership with Sierra Pacific Resources and TransCanada PipeLines Ltd. It stretches from Malin, OR through Northern California to Sierra Pacific Power Co.'s Tracy Power Station near Reno.