Attempt

FERC yesterday conditionally approved a significant re-design ofthe New England bulk electricity market in an attempt to reduce theprice volatility stemming from generation shortages and congestedtransmission systems. But it could be as much as two years beforethe regional market feels the effects of the changes.

In an attempt to go “above and beyond” federal regulations, sixof Massachusetts’ oldest — and dirtiest — power plants will beretrofitted or rebuilt and will switch to cleaner burning naturalgas after reaching a voluntary agreement last week with stateofficials. The six plants, owned by five companies, vowed to cuttheir emissions in half by 2003, a move that has followed growingpolitical and grassroots pressure throughout Massachusetts.

In an attempt to go “above and beyond” federal regulations, sixof Massachusetts’ oldest — and dirtiest — power plants will beretrofitted or rebuilt and will switch to cleaner burning naturalgas after reaching a voluntary agreement this week with stateofficials. The six plants, owned by five companies, vowed to cuttheir emissions in half by 2003, a move that has followed growingpolitical and grassroots pressure throughout Massachusetts.

Natural gas bulls were back on the defensive yesterday after anearly attempt to push prices to new highs above $3.175 fell short.Once initiated, the downward momentum continued throughout much ofthe trading session, as traders took profits and filled in a chartgap created by Monday’s higher open. May and June contractssuffered a uniform 2.7-cent setback to finish at $3.110 and $3.124respectively.

An attempt to slow development of merchant power plants inFlorida has been derailed, at least temporarily, but independentpower in the sunshine state still faces some governmental hurdles.

In an attempt to reduce U.S. dependence on foreign oil, Sen. KayBailey Hutchison (R-TX) introduced legislation yesterday that wouldoffer tax credits to domestic producers of marginal oil and naturalgas wells. Although the credits would not become effective untilthe prices of oil and gas fell significantly, they would providesecurity for marginal well producers facing market uncertainty.

A team of El Paso Natural Gas executives last week tried toclear away any confusion that their transportation customers mayhave had with the pipeline’s new capacity-allocation proposal, buttheir efforts appeared to have fallen short as some shippers leftthe FERC technical conference more bewildered than when they wentin.

A team of El Paso Natural Gas executives took the opportunityyesterday to explain in detail to their transportation customersthe pipeline’s new capacity-allocation proposal, but many left theFERC technical conference more bewildered than when they arrived.

In an attempt to decide between buying third-party capacity orbuilding the facilities to generate the capacity itself, FloridaPower Corp. issued an RFP yesterday, seeking bids from companiesinterested in generating 530 MW for the electric company beginningin Nov. 2003.