Arizona

Despite a prolonged outage at Palo Verde Nuclear Generating Plant in Arizona, Albuquerque, NM-based PNM Resources Wednesday reported increased second quarter profits of $17.4 million, or 25 cents/diluted share, compared with $12.5 million, or 20 cents/diluted share, for the second quarter in 2005.

Arizona-based Stirling Energy Systems (SES) announced a contract with San Diego Gas & Electric (SDG&E) to provide between 300 MW and 900 MW of solar power, 30 times more solar power than is now being generated in the San Diego region.

The $13 billion, 10-year energy tax package is expected to face a number of challenges this week from Republican senators seeking to strip it from the troubled corporate tax cut bill (S. 1637). Few, however, were willing to speculate Monday on whether the energy tax provisions would survive to remain part of the larger tax legislation.

Arizona regulators and East-of-California (EOC) shippers have asked FERC to suspend action on El Paso Natural Gas pipeline’s settlement of California claims until the company files the complete settlement document. The pipeline’s submission of a partial settlement is “merely a tactic” to delay a Commission ruling in the natural gas-price manipulation case against El Paso, they allege.

Arizona regulators and East-of-California (EOC) shippers have asked FERC to suspend action on El Paso Natural Gas pipeline’s settlement of California claims until the company files the complete settlement document. Submitting an incomplete settlement is “merely a tactic” to delay a Commission ruling in the natural gas-price manipulation case against El Paso, they allege.

The North Baja natural gas transmission pipeline from the Arizona-California border and along the northern edge of Baja California, Mexico is now fully subscribed for its 500 MMcf/d capacity over the next 25 years, creating an “energy annuity” for Sempra Energy and its partners in the project, Sempra’s CEO Steve Baum told a group of financial analysts at the company’s day-long meeting last Thursday in San Diego.

An equipment problem involving steam to the main turbine at the Palo Verde Nuclear Generating Station in Arizona caused a shutdown of Unit 2, APS Generation said on Friday. The 1,270 MW unit (APS share = 380 MW) performed as designed in this situation and shut down automatically. While all of the equipment operated normally during the shutdown, the details are being investigated and it is expected that the unit will return to service early next week, APS said. Units 1 and 3 continue to operate at full power. In the meantime, APS reported that it has adequate supply to meet its customer needs. “Our reserves are sufficient to meet customer demands during the outage,” said Jim Levine, executive vice president of APS Generation. “Our customers will have the energy they need to keep their homes cool and their lights on.” APS Generation, a subsidiary of Pinnacle West Capital Corp., operates Palo Verde on behalf of the station’s six other owners.

In light of “gaming” of natural gas wholesale prices at the California-Arizona border and ongoing pipeline constraints, the head of the California Public Utilities Commission last Wednesday said she and her fellow regulators are looking to go farther than several current proposals for unbundling the intrastate transmission and storage services of Southern California Gas Co.

In light of “gaming” of natural gas wholesale prices at the California-Arizona border and ongoing pipeline constraints, the head of the California Public Utilities Commission Wednesday said she and her fellow regulators are looking to go farther than several current proposals for unbundling intrastate transmission and storage services by Southern California Gas Co.