Southern Natural Gas will implement an OFO Type 6 for short imbalances effective Friday until further notice. No penalty will apply to short imbalances up to 2% or 200 Dth, whichever is greater; tiered penalties were set for larger imbalances. Saying forecasts indicated “significantly colder weather” in its service area from Wednesday evening through Saturday, Southern told customers that “based on current supplies and anticipated demand,” it expected its storage withdrawal capability to be exceeded “by approximately 540 MMcf” for Thursday’s gas day. It also said that based on supply patterns from recent high-throughput days, it will be evaluating and potentially allocating receipt points west of Enterprise Compressor Station, which is on its south mainline in southern Mississippi. Fifteen receipt groups (see the bulletin board for a list) could be impacted, Southern said. It combined them into “newly defined parent group” 181-West of Enterprise Supply Group.
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Constellation to Sell Downstream Gas Trading Operations
With its acquisition by Berkshire Hathaway’s MidAmerican Energy Holdings working its way through the regulatory process and plans to divest itself of its upstream gas assets and international coal and freight businesses already announced, Constellation Energy said Thursday it also intends to sell its Houston-based downstream gas trading operations.
Spitzer: Programmatic Approach to LNG Siting Needs Consideration
FERC Commissioner Marc Spitzer endorsed the possibility of federal permitting of potential liquefied natural gas (LNG) projects that would apply a programmatic — as opposed to ad hoc, case-by-case — environmental review. Spitzer made his comments at the “Energy in California” conference Monday in San Francisco while responding to questions from participants in the Law Seminars International two-day meeting.
Transportation Notes
Pacific Gas & Electric issued a systemwide Stage 2 low-inventory OFO, effective Wednesday, for its California Gas Transmission system. Penalties of $1/Dth will apply to customers who exceed a 6% tolerance for negative daily imbalances.
Transportation Notes
Southern Natural Gas will implement an OFO Type 6 for short imbalances Friday. Tiered penalties will apply to shippers who run negative imbalances exceeding 2% or 200 Dth, whichever is greater. Southern said it is highly likely that the OFO will be extended through at least Saturday.
Transportation Notes
Pacific Gas & Electric issued a systemwide Stage 3 high-inventory OFO for Wednesday on its California Gas Transmission system. Penalties of $5/Dth will apply to shippers who exceed a positive daily imbalance tolerance of 3%.
Duke Energy Ohio Asking to Boost Base Rates
Duke Energy Ohio will apply to the Public Utilities Commission of Ohio (PUCO) a natural gas base rate increase of $34 million, 5.8% overall, effective in early to mid-2008, the company said Monday. It is the division’s first general rate filing since 2001.
Transportation Notes
Southern Natural Gas declared an OFO Type 6 for long imbalances that takes effect Friday until further notice. No penalty will apply to long imbalances less than 2% or 200 dekatherms (whichever is less) in excess of scheduled volumes. Tiered penalties will be charged for imbalances greater than 2%, topped by $15/Dth for imbalances exceeding 8%. Southern said it was “highly likely” that the OFO will be extended through at least Saturday and Sunday.
Transportation Notes
Southern Natural Gas is implementing an OFO Type 6 Friday for long imbalances. Tiered penalties will apply to positive imbalances exceeding 2% or 200 dekatherms, whichever is less. Southern expected the OFO to stay in effect through at least Sunday. The pipeline also declared force majeure and expected to begin maintenance Thursday afternoon on its South Main Loop Line downstream of Wrens Compressor Station; the work is expected to last through Oct. 12 and is reducing capacity in Group 07 East of Wrens by about 175 MMcf/d. See the bulletin board for a list of affected points. A spokesman said field personnel had not isolated the Loop Line yet as of mid-afternoon Thursday, so the work might start later that day but might not get under way until Friday.
Kelly: FERC Transmission Policy Should Cover All Business Models
The transmission policy that FERC crafts should apply to every business model that could build transmission, Commissioner Suedeen Kelly said last Tuesday in an appearance before a meeting sponsored by the National Energy Marketers Association (NEMA). “We don’t need to favor one over another — we need them all,” she said.