Authority

Just weeks after FERC suspended Transwestern Pipeline’s authority to negotiate rates based on pricing differentials due to excessive charges to Sempra Energy Trading and another transportation customer, the Commission has expressed concerns about another negotiated firm transportation contract between the Enron pipeline subsidiary and Sempra Energy.

East Tennessee Natural Gas has filed an amendment to its Patriot expansion-extension project to reflect the Tennessee Valley Authority’s (TVA) decision to scrap its plans to build a 510 MW power generation facility in the state, as well as a decision by another customer — Cogentrix affiliate Henry County Power LLC — to delay the construction of its proposed 1,080 MW generation facility in Virginia.

Charles River Associates Inc. (CRA) has been chosen by the New York State Energy Research and Development Authority (NYSERDA) and the New York Independent System Operator (NYISO) to analyze the interactions between natural gas and electricity systems within the state. Among other things, CRA will examine whether existing pipelines will be able to handle the increased flow of gas required by proposed power plants in the state.

Congressional passage of President Bush’s energy initiatives, as well as expanded free trade authority, will have a “great bearing” on the nation’s economy this year and beyond, Vice President Dick Cheney said in a speech Monday to the Southern Governors’ Association (SGA).

The New York State Energy Research and Development Authority (NYSERDA) and the New York Independent System Operator (NYISO) are concerned about a potential overload of the gas transportation system in the state. The two organizations have commissioned a study examining the impact of increased gas demand from 22 proposed new gas or dual fuel power plants, which currently are applying for permits under the state’s siting process. The dual fuel plants also may put a strain on the delivery infrastructure for alternative fuels, the organizations noted.

Cheniere Energy Inc. announced that it has entered into an agreement with the Port Authority of Brownsville, TX to secure its second LNG terminal site. Cheniere said it acquired a three-year option on a 125-acre site within the Port of Brownsville for the purpose of building an LNG terminal. Under the agreement, Cheniere has the right to convert the option into a long-term lease. Cheniere previously announced plans to acquire three sites on the Texas Gulf Coast to develop LNG receiving terminals and that it had acquired a three-year option for an initial LNG terminal site in Freeport, TX. Cheniere believes that in the next decade, LNG could supply the U.S. market with 15 billion cubic feet per day (Bcf/d) or more of natural gas. Current capacity in existing domestic terminals, including expansion, is limited to less than 5 Bcf/d.

Pennsylvania’s Commonwealth Court made it clear last week that the state Public Utility Commission (PUC) has the ultimate say over how best to ensure reliability for Pennsylvania’s electric system, saying that the PUC needs to have wide latitude in being able to order customers to curtail energy usage during periods of peak demand in order to avoid brownouts or blackouts.

Bonneville Power Authority (BPA) violated its tariff in failing to provide 227 MW of short-term capacity to Idaho Power, when the capacity was availabile and the Idaho company was next in the bidding queue, FERC said in an order issued Monday (EL01-66).

American Electric Power (AEP) and the Lower Colorado River Authority (LCRA) last Wednesday said that they have reached a joint development agreement designed to improve the capacity and reliability of electric transmission systems in South and West Texas.