Administration

Western legislators will be leading off one offensive of the newadministration’s energy strategy March 7, with a U.S. HouseResources Committee hearing on restrictions on exploration and gasdevelopment on public lands and the Outer Continental Shelf (OCS)and their impact on power markets.

Western legislators will be leading off one offensive of the newadministration’s energy strategy March 7, with a U.S. HouseResources Committee hearing that explores restrictions on gasdevelopment on public lands and the Outer Continental Shelf (OCS)and their impact on power markets.

The Energy Information Administration (EIA) again raised itswholesale and retail gas price projections for the winter andconfirmed that gas storage levels at the end of December were lowerby 10% than the previous record low set in 1976.

Alaska Gov. Tony Knowles’ State of the State address this weekcentered on what could become the legacy of his administration: an1,800-mile natural gas pipeline to transport the state’s 36 Tcf tothe marketplace. With energy prices and energy consumption burstingat the seams, Knowles is dedicating the remainder of his term,which expires in 2003, to the gas project.

The Energy Information Administration (EIA) again raised itswholesale and retail gas price projections for the winter andconfirmed that gas storage levels at the end of December were lowerby 10% than the previous record low set in 1976.

With little or no fanfare from the lame-duck Clintonadministration, FERC Chairman James J. Hoecker received a recessappointment yesterday from the White House that effectively extendshis term on the Commission until the Senate adjourns next year. Italso re-designated him as chairman.

The Energy Information Administration (EIA) released a handy newbrochure yesterday for residential customers who are wondering whytheir natural gas bills are expected to soar by 44% this wintercompared to last winter. Gas supply will be adequate to meet demandthis winter, according to EIA, but prices and gas usage are goingto increase substantially.

Natural gas production is on the upswing, according to EnergyInformation Administration’s November Short Term Energy Outlook.The agency said the “torrid pace” of gas drilling activity in NorthAmerica is starting to pay off. As a result, wellhead gas pricesshould ease further away from the $5/Mcf level through 2001 thanpreviously projected. Prices this winter, however, should stayabove $4.

The Bonneville Power Administration says that customer demandunder new 10-year wholesale power contracts is so strong that itwill have to purchase power on the open market to augment itssupply. To recover its costs, BPA also proposes to add a 15% chargeonto its wholesale rates going into effect Oct. 1, 2001.