Approaches

As is usually the case, the California Public Utilities Commission (CPUC) appears split (with one commissioner undecided) ahead of a key decision expected to be made on Feb. 11 on Southern California Gas Co.’s (SoCalGas) comprehensive settlement agreement on transportation and storage unbundling, a SoCalGas official said Monday.

With the high cost of natural gas a major customer concern across the country as the nation approaches the winter heating season, Vectren Corp. informed its utility customers that although higher gas prices are in store, gas bills might be lower than last year due to milder temperatures.

As it approaches a clean legal and financial divorce from its second and most recent Chapter 11 bankrupt business unit, PG&E Corp., San Francisco, indicated Tuesday it could become embroiled in a federal court dispute over alleged “shared tax benefits” due the now-bankruptcy-mired PG&E National Energy Group (NEG). Several hundred million dollars could be at stake, according to PG&E holding company officials.

Prices continued to fall Wednesday as the swing market remained in a non-surprising bearish mood leading up to the Independence Day weekend. Growing cooling demand in the South, Midwest and parts of the West was insufficient to overcome the price-depressant effects of a second straight day of futures decline, a load drop-off that was already being felt ahead of the holiday, and anticipation of a storage injection report Thursday morning that could again exceed 100 Bcf.

As the winter season approaches, Cascade Natural Gas Corp. Friday reported that it has received approval from the Washington Utilities and Transportation Commission (WUTC) for its purchased gas cost adjustment, as well as its amortization of under-recovered gas cost from last winter’s filings.

Plummeting gas prices have prompted a large number of idled ammonia producers to restart operations this month, after lengthy downtime due to last winter’s record gas price increases. Houston-based Industrialinfo.com, which tracks manufacturing, said most of the Gulf Coast and Midcontinent plants are at partial or full capacity.

Plummeting gas prices have prompted a large number of idled ammonia producers to restart operations this month, after lengthy downtime due to last winter’s record gas price increases. Houston-based Industrialinfo.com, which tracks manufacturing, said most of the Gulf Coast and Midcontinent plants are at partial or full capacity.

The Department of Energy (DOE) has announced several new projects aimed at expanding future approaches for storing natural gas, improving gas transportation and pipeline reliability and integrity.

With the blustery days of winter not all that far off, FERC chairman Pat Wood last Friday made it clear that he will keep a watchful eye on how energy markets in the Pacific Northwest progress over the coming months, since that part of the country has a winter peaking system bolstered by hydro-electric power and has seen precipitation fall off dramatically.