One of California’s most diligent economic analysis/forecasts published by the Los Angeles County Economic Development Corp. (LAEDC), a nonprofit economic development group with increasing statewide reach, indicated in its latest weekly economic outlook for the region and state that energy this summer could be a worrisome component of the state’s sagging economy. It particularly targeted the potential ill-effects of high natural gas prices, which could be felt more severely in the East than the West, the forecast noted. “The current cool weather will not last forever,” wrote economist George Huang in LAEDC’s forecast for the week of June 9-15. “When the mercury goes up, electricity grid operators get nervous.” He credited last year’s relatively cooler summer in California for preventing blackouts, adding “we may not be so lucky this summer.”
Angeles
Articles from Angeles
LADWP Unconcerned About FERC CA Decisions, Gas Prices
The nation’s largest municipal utility, the Los Angeles Department of Water and Power (LADWP), feels secure in being able to avoid any negative impact from Wednesday’s federal decisions on pending California electricity crisis cases, and in hedging against the current and projected volatility in wholesale natural gas prices, according to General Manager David Wiggs in an interview Monday with NGI/Power Market Today.
Industry Briefs
Sempra Energy’s Los Angeles-based gas utility Southern California Gas Co. Wednesday announced it is offering to list natural gas suppliers who market to its largest customers on the utility web site (www.socalgas.com). Suppliers interested in being listed should call: Mary Reid, SoCalGas transportation products advisor, 213-244-3898. As the nation’s largest gas utility distribution company, SoCalGas serves 18 million customers through 5.1 million meters in a service territory encompassing 23,000 miles in the southern half of California. The utility said the move was another effort to “provide exceptional customer service.”
Industry Briefs
Occidental Petroleum Corp., based in Los Angeles, said it replaced 140% of its 2002 worldwide production of 188 MMboe at an average finding, development and acquisition cost of $4.65/boe. Worldwide proven reserve additions from all sources in 2002 totaled approximately 263 MMboe, resulting in a 3% increase in reserves to 2.31 Bboe a reserves-to-production ratio of 12.3 years at the end of 2002. Improved recovery contributed 141 MMboe, or 54% of 2002 total reserve additions. Acquisitions made up 68 MMboe, and extensions and discoveries added 51 MMboe, or 26% and 19% of the total, respectively. The remaining 1% came from revisions. Approximately 69% of the 2002 worldwide reserve additions came from U.S. operations, replacing 153% of U.S. production of 119 MMboe. In addition, the company replaced 117% of its international production of 69 MMboe. For the three-year period, 2000-2002, Occidental’s average annual reserve replacement rate was 316% at an average finding, development and acquisition cost of $4.09/boe.
CA Southwest Gas Customers Get Rate Relief from CPUC
Las Vegas-based Southwest Gas Corp. customers in the high desert and mountains northeast of Los Angeles were granted some interim rate relief retroactively back to Jan. 16 by California regulators Thursday, although it does not deter the regulators’ ongoing investigation of how Southwest handled last year’s extreme run-up in wholesale natural gas prices at the California-Arizona border. Normal ratemaking processes were waived because of retail customers’ “extraordinary” circumstances this winter in the relatively colder mountain and desert climate zones.
CA Southwest Gas Customers Get Rate Relief from CPUC
Las Vegas, NV-based Southwest Gas Corp. customers in the high desert and mountains northeast of Los Angeles were granted some interim rate relief retroactively back to Jan. 16 by state regulators Thursday, although it does not deter the regulators’ ongoing investigation of how Southwest handled last year’s extreme run-up in wholesale natural gas prices at the California-Arizona border. Normal ratemaking processes were waived because of retail customers’ “extraordinary” circumstances this winter in the relatively colder mountain and desert climate zones.
Enron Names Restructuring Specialist Interim CEO
Enron Corp. on Tuesday named Stephen F. Cooper, managing partner with New York-based Zolfo Cooper LLC, a corporate recovery and crisis management firm, as interim CEO and chief restructuring officer. Cooper has more than 30 years of experience leading companies through operational and financial reorganizations. Cooper will be joined by a team of Zolfo Cooper professionals and current Enron executives to assist with Enron’s restructuring effort.
Bush Say ‘No’ to Price Caps, Will Review Gas
President George W. Bush, addressing business leaders and Gov. Gray Davis in Los Angeles Tuesday, delivered a public and unmistakable ‘no’ to price caps as a way out of the western energy crisis, and called for an end to finger-pointing. “Blame shifting is not action,” Bush said. “It is distraction.”
Judge Denies Quick Relief for SoCal Edison
A federal judge in Los Angeles yesterday denied debt-riddenSouthern California Edison’s plea to begin immediately passing onits mounting wholesale power debt load to retail customers.
CA Governor Signs Energy Bailout Bill
Following last week’s flurry of state initiatives and an energyroundtable among 10 western governors, California will be busysorting through the details full this week, including signinginitial long-term power contracts, which Gov. Gray Davis haspromised will begin to move the continuing “crisis” into thelonger-term “challenge” mode. In the interim retail direct-accesssales will be suspended among other provisions in the newlegislation.
