Blast

As the western states generally, and California in particular,faced another blast of power-draining summer heat, Duke EnergyNorth America (DENA) last week proposed to California Gov. GrayDavis a combination of long- and short-term new generation and afive-year, fixed-price electricity option to buffer mass consumersfrom electric price volatility.

As the western states generally, and California in particular,faced another blast of power-draining summer heat, Duke EnergyNorth America (DENA) proposed Monday to California Gov. Gray Davisa combination of long- and short-term new generation and afive-year, fixed-price electricity option to buffer mass consumersfrom electric price volatility.

U.S. and Canadian shippers on Northern Border Pipeline havelobbed a barrage of protests at the pipeline’s latest request toroll-in the costs of its Project 2000 extension, with some going asfar as to question the need for the Illinois-to-Indiana extension.

The Independent Petroleum Association of America came outstrongly against a proposal presented earlier this week byDemocratic presidential candidate Bill Bradley that would do awaywith several tax loopholes currently benefiting oil and gasproducers.

The Natural Gas Supply Association (NGSA) last week called intoquestion Vice President Al Gore’s pledge to continue the drillingban along the Florida and California coasts if he’s electedpresident. “The producers of natural gas are dismayed by yourrecent announcement” to stop in its tracks any drilling along thesetwo coasts, where it’s believed more than 40 Tcf of gas may beavailable, wrote NGSA President R. Skip Horvath in a letter toGore. “Denying access to this environmental fuel, some of whichresides offshore, appears inconsistent with the goal for a cleanerfuture.”

Shippers shot Southern Natural’s proposed rate increase full ofholes last week at FERC. Wholesale and retail marketers, municipaland investor-owned utilities, industrial gas users and gasproducers alike told FERC to deny Sonat’s request that theincreased rates be made effective Oct. 1. There was a unanimouscall for hearings and a suspension of the filing for the fullfive-month period subject to refund.

A broad coalition of gas and electric trade groups has askedFERC to reconsider a July rehearing decision that prompted it topurge any reference to immediate relief from its final rule oncomplaint procedures.

While analysts consider Devon Energy Corp.’s planned acquisition of PennzEnergy Co. a smart move, PennzEnergy investors are smarting over what they consider too low a price.

Construction of a new 710 MW gas-fired cogeneration plant toreplace a 75-year old powerhouse supplying Ford Motor Company’smassive Rouge complex and Rouge Steel Co. in Dearborn, MI, is goinginto overdrive following the explosion of a boiler Tuesday thatkilled one person, critically injured a dozen others and shut downthe old plant.