California

As part of its 53 long-term electricity contracts, California’s Department of Water Resources (DWR) is shopping for a portfolio of natural gas supplies of various duration to use in about half the deals that give the state the option of providing its own fuel supplies when it can beat prevailing market rates used by its power suppliers.

Southern California Gas extended Friday’s Overnominations Day notice through at least Saturday. Pacific Gas & Electric declared a Stage 3 high-inventory OFO with $5/Dth penalties for Saturday but left the tolerance for positive imbalances relatively loose at 15%.

Since the “near-term problems” involving the California power market and added funding for low-income energy assistance seem to have become less pressing, Chairman Jeff Bingaman (D-NM) announced last week that the Senate Energy and Natural Resources Committee will move up its consideration of comprehensive legislation that will address long-term energy issues.

Since the “near-term problems” involving the California power market and increased funding for low-income energy assistance seem to have been resolved or are close to it, Chairman Jeff Bingaman (D-NM) announced yesterday the Senate Energy and Natural Resources Committee will move up its consideration of comprehensive legislation that will address long-term energy issues.

Under the fresh new provisions for two- and one-day advance notices of potential rolling blackouts, California’s transmission grid operator, Cal-ISO, issued warnings Monday for later this week of potential rolling blackouts. None were needed Monday as temperatures in the inland valleys soared statewide, driving peak demand to 37,200 MW, about 1,000 MW higher than forecast. The warnings automatically terminated, however, when no follow-up 24-hour notice was issued.

On orders from a state Superior Court judge, California officials Friday made public the 38 long-term electricity contracts it has signed this year with 18 suppliers and marketers. Along with the impact of conservation and favorable weather of late, the state’s long-term contracts have cut its average cost of spot market power from $275/MWh in February to $121/MWh this month.

Southern California Gas did not extend an Overnominations Day notice beyond Friday, but Pacific Gas & Electric declared another systemwide Stage 3 high-inventory OFO for Saturday. The OFO carries penalties of $5/Dth for positive imbalances exceeding a 6% tolerance.

Emergency legislation designed to provide relief to the troubled California wholesale energy markets could get consideration by the full House Energy and Commerce Committee this week, a Capitol Hill staffer told NGI last week.

Emergency legislation designed to provide relief to the troubled California wholesale energy markets could get consideration by the full House Energy and Commerce Committee as early as next week, a Capitol Hill staffer told NGI yesterday.