Capitol

Some Capitol Hill lawmakers and energy experts believe theUnited States may be setting itself for another energy crisis 10 to20 years down the road by relying to heavily on natural gas to fuelnew power generation facilities.

Some Capitol Hill lawmakers and energy experts believe theUnited States may be setting itself up for another energy crisis 10to 20 years down the road by relying too heavily on natural gas tofuel new power generation facilities.

The Department of Transportation’s Office of Pipeline Safety(OPS) came under sharp attack last week on Capitol Hill, withcritics lashing out against the agency for its “poor record” ofensuring the safe operation of the hundreds of thousands of milesof natural gas and hazardous liquids pipelines that criss-cross thenation.

In an effort to reduce U.S. dependence on foreign oil, Sen. KayBailey Hutchison (R-TX) introduced legislation last week that wouldoffer tax credits to domestic producers of marginal oil and naturalgas wells. Although the credits would not become effective untilthe prices of oil and gas fell significantly, they would provide asort of financial safety net to encourage marginal well producersto reopen shut-in wells in the face of a volatile market.

In an attempt to reduce U.S. dependence on foreign oil, Sen. KayBailey Hutchison (R-TX) introduced legislation yesterday that wouldoffer tax credits to domestic producers of marginal oil and naturalgas wells. Although the credits would not become effective untilthe prices of oil and gas fell significantly, they would providesecurity for marginal well producers facing market uncertainty.

Although often on different sides of the fence at FERC and onCapitol Hill, major producers have rallied to defend interstate gaspipelines against allegations that painted them and other pipes asticking “time bombs.”

Capitol Hill lawmakers, federal and state regulators and anumber of power industry representatives last week indicated thatthe results of the FERC staff inquiry into the pricing turmoil inthe Midwest power market were a vindication of their originalsuspicions. Staff proved once and for all, they said, thatelectricity restructuring was not the culprit behind the pricespike in late June, and it found nothing that smacked of marketmanipulation.

Given the recent price spikes in the Midwest and Californiaelectricity markets, a California power agency has called onCongress to take the necessary steps to rein in unleashed marketpower when it takes up restructuring legislation next year.

In one of its speediest confirmations ever on Capitol Hill, theSenate on Friday approved by unanimous consent the re-appointmentof Commissioner William L. Massey to a second five-year term on theFederal Energy Regulatory Commission.