Winners and Losers: Weaker Pipelines To Become Stronger

✍ Scribed by Willett, Robert E.

• Book ID: 102218429
• Publisher: John Wiley and Sons
• Year: 2008
• Weight: 230 KB
• Volume: 8
• Category: Article
• ISSN: 0743-5665
• DOI: 10.1002/gas.3410081109

✦ Synopsis

This large amount of work remaining after Order 636 could well determine more winners and losers than can be detennined today. in the opinion of John E. Olson, vice president equity research for Goldinan Sachs & Co. Nevertheless, he WQP willing to risk some conclusions about the effects of the order on the various parts of the industry.

NG: Can pipelines expect Order 636 to bail them out?

Olson: Order 636 has one or two significant benefits for pipelines, the most significant of which is the absence of any incurred transitioncosts. Philosophically, I'd say that's not a real benefit: That should happen automatically. But in the context of the temble experience of 1987-90, with the massive three billion dollars of after-tax take-or-pay writeoffs incurred, this is a relative win for the industry.