Although

Although U.S. Energy Secretary Bill Richardson has been soundingthe alarm all over the country about problems with the nation’selectric reliability because of at least six power outages thatoccurred last summer, several utility executives told the secretarylast week at a regional “summit meeting” in Newark, NJ, that theyare ready and waiting for the next summer demand peak.

Although U.S. Energy Secretary Bill Richardson has been sendingup red flags all over the country about problems with the nation’selectric reliability because of at least six power outages thatoccurred last summer, several Mid-Atlantic utility executives toldthe secretary yesterday at a regional “summit meeting” in Newark,NJ, that they are ready and waiting for the next summer demandpeak.

Although the tight supply/demand situation for gasoline took thespotlight in the Energy Information Administration’s Short-TermEnergy Outlook last week, the EIA was pretty bullish on natural gasas well. The administration has gas demand rising 3.5% this year to22.17 Tcf and 4.1% next year to 23.08 Tcf. It projects a major 22%wellhead price hike this year to an average of $2.56/MMBtu followedby a much smaller rise in 2001 to $2.61. EIA sees dry domestic gasproduction inching up about 1% this year and only about 0.2% in2001. Imports are seen rising 8.3% this year to 3.67 Tcf and 2.7%next year to 3.77 Tcf.

Due to unscheduled maintenance at its Elmore (AL) CompressorStation, Sonat expects a 5,000-horsepower unit to remainunavailable until April 9. Although no reductions were anticipatedas of Sunday, it may be necessary to cut FT on a pro rata basis,the pipeline said.

Although the creation of Westar Energy did not follow the pathoriginally intended, plans for the utility holding company were setin motion last week when Western Resources announced it will splitthe company into two separate entities, one covering electricutility businesses and another for its non-electric operations.Both companies will be public entities. The separation is expectedoccur through a voluntary exchange offer expected to be completedprior to year-end.

Although it’ll be poorer by a couple of million dollars, KinderMorgan Inc. says it’s glad to have finally reached a settlementwith FERC resolving many of the marketing-affiliate issues thathave dogged its pipeline companies for years.

Coralconnect.com, Coral Energy’s e-business web site, jumpedinto the online energy trading fray yesterday when it announced anexpansion of its services to include the buying and selling ofcertain gas contracts.

Although FERC’s recent effort to clarify its interconnectionpolicy was a “major step” in the right direction, the ElectricPower Supply Association (EPSA) last week said greater reforms wereneeded to protect new generators seeking to interconnect to thepower grid. It asked the Commission to issue a policy statementthat would “comprehensively” spell out “the rights, obligations andexpectations” of interconnecting generators and providers ofinterconnection/transmission services.

Although FERC’s recent effort to clarify its interconnectionpolicy was a “major step” in the right direction, the ElectricPower Supply Association (EPSA) said greater reforms are needed toprotect new generators seeking to interconnect to the power grid.It has asked the Commission to issue a policy statement that would”comprehensively” spell out “the rights, obligations andexpectations” of interconnecting generators and providers ofinterconnection/transmission services.