Bolster

Implementing a safe harbor provision assuring that those who report prices to published price surveys will not be prosecuted for inadvertent mistakes would be best achieved through a policy statement, industry representatives told the Federal Energy Regulatory Commission Wednesday at a technical conference.

Although still revenue and asset-strong, Los Angeles Department of Water and Power (LADWP), the nation’s largest municipal utility, is facing increased local political pressure to prepare for a worst-case scenario of higher than expected natural gas prices. The city wants LADWP to tighten up its operations with the creation of a $100 million contingent budget item as a reserve for high gas costs.

Although still revenue and asset-strong, the nation’s largest municipal utility, the City of Los Angeles Department of Water and Power (LADWP) is facing increased local political pressure to tighten up its operations with the giant muni’s creation of a $100 million contingent budget item to cover a “worst case” scenario of higher-than-expected natural gas costs.

Seeking to bolster the expansive, 18-state regional power grid in their states, western governors last week signed a memorandum of understanding (MOU) with three key federal agencies. Bush administration officials and the state chief executives cemented the agreement during the Western Governors’ Association (WGA) annual meeting in Coeur d’ Arlene, ID.

Representatives of the oil and gas industry last week applauded the Bush administration’s effort to use gas royalties, in-kind or in-value, to bolster the Low Income Home Energy Assistance Program (LIHEAP). The House Resources Subcommittee on Energy and Mineral Resources held an oversight hearing last Tuesday to examine the possibility of expanding the Minerals Management Service’s existing royalty in-kind (RIK) pilot programs in Wyoming (oil) and the Gulf of Mexico (oil and natural gas) to meet the administration’s request.

Florida Gas Transmission (FGT) last week announced plans to buy300 MMcf/d of firm capacity in Koch Gateway Pipeline’s Mobile Baylateral. The firm space will be utilized as upstream supply accessfor FGT’s Phase V expansion project, which is expected to be filedby Dec. 1. FGT said the Mobile Bay lateral agreement will be filedas part of the Phase V expansion and will be contingent upon theexpansion project being approved.

Florida Gas Transmission (FGT) yesterday announced plans to buy300 MMcf/d of firm capacity in Koch Gateway Pipeline’s Mobile Baylateral. The firm space will be utilized as upstream supply accessfor FGT’s Phase V expansion project, which is expected to be filedby Dec. 1. FGT said the Mobile Bay lateral agreement will be filedas part of the Phase V expansion and will be contingent upon theexpansion project being approved.

NiSource suffered two significant setbacks last week in itsbattle for a $5.7 billion hostile takeover of Columbia EnergyGroup, but the company vowed to continue its pursuit of Columbia.

A day after a Delaware Judge dismissed one of three NiSourcelawsuits against Columbia Energy Group, NiSource suffered yetanother setback in its battle for a hostile takeover of Columbia.Ohio State Representative David Goodman (R-Bexley), who already haspublicly opposed the merger, has introduced legislation designed toclose a loophole in Ohio law that would allow hostile takeovers ofgas utilities to take place without public review and scrutiny.Goodman was joined as sponsor of the legislation by 77 of the 99members of the Ohio House of Representatives.