Awash

Awash in natural gas storage proposals, but short on follow-through in getting one built, Arizona energy stakeholders again have their hopes raised this month by the prospect of a major project proposed by a Houston-based developer in an area between Phoenix and Tucson. The Arizona Corporation Commission (ACC) has been briefed on the 5 Bcf proposal and could eventually hold hearings on it if utilities it regulates contract for storage.

Awash in natural gas storage proposals, but short on follow-through in getting one built, Arizona energy stakeholders again have their hopes raised this month by the prospect of a major project proposed by a Houston-based developer in an area between Phoenix and Tucson. The Arizona Corporation Commission (ACC) has been briefed on the 5 Bcf proposal and could eventually hold hearings on it if utilities it regulates contract for storage.

With the industry is still awash in talk surrounding the Bank of Montreal’s (BMO) recent natural gas trading losses of C$350-450 million (US$313.70-403.33 million), the aftershocks and tremors continue to be felt by others in the industry, including Valhalla, NY-based brokerage Optionable Inc., which reportedly has been linked to the bank. Some market watchers in their analysis of the event have gone as far as calling the natural gas market a “Catch-22,” where you get in just as much trouble by hedging as not hedging.

With the industry is still awash in talk surrounding the Bank of Montreal’s (BMO) recent natural gas trading losses of C$350-450 million (US$313.70-403.33 million), the aftershocks and tremors continue to be felt by others in the industry (see related story), including Valhalla, NY-based brokerage Optionable Inc., which reportedly has been linked to the bank. Some market watchers in their analysis of the event have gone as far as calling the natural gas market a “Catch-22,” where you get in just as much trouble by hedging as not hedging.

Starting with a $15 billion rate base on which to earn an 11.22% return, Pacific Gas and Electric Co., which recently emerged from bankruptcy, now faces the second half of the year with bullish optimism, knowing that even small percentage growth can reap some big bucks. That is why the utility’s executives Tuesday predicted solid earnings and a restoration of a dividend early next year for the first time in four years.

Starting with a $15 billion rate base on which to earn an 11.22% return, Pacific Gas and Electric Co., which recently emerged from bankruptcy, now faces the second half of the year with bullish optimism, knowing that even small percentage growth can reap some big bucks. That is why the utility’s executives Tuesday predicted solid earnings and a restoration of a dividend early next year for the first time in four years.

If the Pacific Northwest gets most of the 28,000 MW of natural gas-fired combined-cycle power plants now planned for the region, its natural gas demand will shoot up to 2.5 times current levels, according to an engineer and gas analyst from the region who spoke last week at a two-day industry conference in Seattle.

If the Pacific Northwest gets most of the 28,000 MW of natural gas-fired combined-cycle power plants now planned for the region, its natural gas demand will shoot up to 2.5 times current levels, according to an engineer and gas analyst from the region who spoke last week at a two-day industry conference in Seattle.

With bankruptcy and California’s continuing market machinations an everyday preoccupation, PG&E Corp. seemed to take in stride the nation’s slowing economy and the growing industry concerns centered on Enron Corp.’s apparent implosion. The company’s senior officials said in their third-quarter earnings conference call with financial analysts last week that they see a dampening of demand, increased debt costs for nonutility operations and less opportunities to make big increases in energy trading.