Above

With gas prices near $5/MMBtu, oil above $30/bbl and powerprices spiking 700% in Southern California this summer, the signsof struggle in the energy sector are clear. It’s the requiredresponse that still seems a little cloudy.

Finding Friday’s customer-specific OFO (see Daily GPI, Sept. 22) insufficient to keep itsprojected linepack from rising well above target levels over theweekend, Pacific Gas & Electric expanded it to a systemwide Stage3 high-linepack OFO for Saturday. The order carried $5/Dth penaltiesfor positive daily imbalances exceeding a 2% tolerance.

Pacific Gas & Electric, projecting above-target linepacktoday through Sunday, issued a customer-specific OFO effectivetoday until further notice.

San Diego Gas & Electric (SDG&E) re-emphasized yesterdaythat it would be willing to arrange its 1.2 million customers’ paymentoptions to accommodate for the above normal electricity prices fromthe California Power Exchange. SDG&E announced it would not shutanybody’s power off for failure to pay through the remainder of thesummer through October. The utility also announced that it would notreport any of its customers to credit agencies during this period oradd late charges. Customers are encouraged to contact SDG&E to setup a flexible payment plan. Customers can call 1-800-411-SDGE or visitthe website, www.sdge.com

The overall weekend market was firmer Friday, ranging frombarely above flat to as much as 20 cents higher with most of thegains concentrated between a dime and 15 cents. San Juan Basin andthe Southern California border were the rare points seeing smalldeclines.

Extreme heat continued yesterday in the Pacific Northwest andArizona and above normal temperatures arrived in New England,prompting the California Independent System Operator (Cal-ISO) andthe New England ISO to issue calls for conservation and to warn ofshort supplies.

In an attempt to go “above and beyond” federal regulations, sixof Massachusetts’ oldest — and dirtiest — power plants will beretrofitted or rebuilt and will switch to cleaner burning naturalgas after reaching a voluntary agreement last week with stateofficials. The six plants, owned by five companies, vowed to cuttheir emissions in half by 2003, a move that has followed growingpolitical and grassroots pressure throughout Massachusetts.

In an attempt to go “above and beyond” federal regulations, sixof Massachusetts’ oldest — and dirtiest — power plants will beretrofitted or rebuilt and will switch to cleaner burning naturalgas after reaching a voluntary agreement this week with stateofficials. The six plants, owned by five companies, vowed to cuttheir emissions in half by 2003, a move that has followed growingpolitical and grassroots pressure throughout Massachusetts.

Peoples Energy Corp. anticipates annual growth in earnings ofmore than 7% by 2002, about 1% above its competitors, with agreater share of earnings — at least 25% — coming fromdiversified businesses and less from its LDC segment, companyofficials said yesterday.