Associations

A group of six energy trade associations, a broad coalition of producers, consumers and utilities and the Committee of Chief Risk Officers (CCRO) late Monday submitted a comprehensive proposal identifying the key natural gas price reporting issues that it reached consensus on, as well as the issues on which agreement was not achieved.

Representatives from natural gas pipeline companies, gas associations and Mid Atlantic power grid operator PJM Interconnection met recently to begin discussions about the impact of adding more natural gas-fired power plants in PJM’s territory. But news of the talks came just as analysts at Energy Security Analysis Inc. (ESAI) issued a report questioning whether the bulk of generation development underway in PJM will ever come to fruition.

Countering comments from labor unions supporting the coal industry, the heads of three natural gas associations in Washington Thursday advised Sen. James M. Jeffords, chairman of the Senate Environment and Public Works Committee, that natural gas is not claiming an undue share of the power generation market. Further, natural gas reserves are plentiful and the delivery system is adequate.

Lauded by both the Interstate Gas Association of America (INGAA)and the Natural Gas Supply Association (NGSA) as a boost for thegas industry, the Environmental Protection Agency’s program forreducing nitrogen oxide (NOx) emissions for 19 eastern andmidwestern states plus the District of Columbia was upheld by theDistrict of Columbia Circuit Court of Appeals recently. Barring anyfurther appeals, the NOx SIP Call rule will be added to the CleanAir Act, requiring the states included in it to reduce their NOxemissions by a total of 1.2 million tons, or 28% from currentlevels, annually. The court’s decision was passed March 3.

Based on comments filed by trade associations last week, thenatural gas industry is split straight down the middle on most ofthe major initiatives in the notice of proposed rulemaking (NOPR)and notice of inquiry (NOI) – with the regulated pipelines and LDCssupporting proposals that would lighten FERC’s grip on pipelinetransportation, and non-regulated producers, marketers andmunicipal distributors concerned the measures could wreak havoc.

Citing the breadth of the undertaking as the reason, six tradeassociations last week jointly asked FERC to extend by 74 days thedeadline for the gas industry to respond to the major notice ofproposed rulemaking (NOPR) and notice of inquiry (NOI) that wereissued in July.

Six industry trade associations will ask FERC today to extend by74 days the deadline for industry comments on the major notice ofproposed rulemaking (NOPR) and notice of inquiry (NOI) that wereissued in July.

Associations representing the natural gas industry hailed thenomination of Bill Richardson, currently United Nations envoy, assecretary of energy to replace Federico Pena who leaves the post atthe end of this month. President Clinton announced his intention tonominate Richardson Thursday.