Case

El Paso Corp. said last week the market has proved wrong all charges that it manipulated California gas prices over the last year while its marketing/merchant power subsidiary held control over 1.2 Bcf/d of firm capacity on its affiliate pipeline, El Paso Natural Gas. El Paso Merchant relinquished control over most of that capacity on June 1 yet gas prices in California continued to be abnormally high in relation to prices elsewhere in the country, El Paso said.

The continuation of abnormally high gas prices at the Southern California border in relation to prices elsewhere in the country proves El Paso Merchant Energy’s 15-month contract for 1.2 Bcf/d of firm capacity on its affiliate pipeline–El Paso Natural Gas–was not the cause of high prices in the state of California, El Paso Corp. said yesterday. Its critics said, however, the $3.24/MMBtu decline in Southern California bidweek prices, which was much sharper than the declines elsewhere this month, indicates that more competition is helping to drive down prices.

An attempt to score a quick tax-cut coup is stretching out into a federal case for TransCanada PipeLines Ltd., with governments that stand to lose the money being offered a chance to put up a fight. The National Energy Board has put off deciding even whether it has to approve the action until TransCanada explains itself much more fully. At the same time, the NEB is working on a procedure for collecting reactions by the provincial governments which stand to lose money as a result of the scheme. All have been officially informed by the board.

El Paso Natural Gas and El Paso Merchant Energy probably exercised market power in the Southern California gas market and drove up gas prices over the past year when pipeline capacity constraints existed, FERC staff concluded last week in testimony before Chief Administrative Law Judge Curtis Wagner Jr.

El Paso Natural Gas and El Paso Merchant Energy probably exercised market power in the Southern California gas market and drove up gas prices over the past year when pipeline capacity constraints existed, FERC staff concluded last week in testimony before Chief Administrative Law Judge Curtis Wagner Jr.

In case anyone missed the lessons of new pipeline construction,hot regulatory fights and negotiating marathons, some newdescriptions for the state of Canadian natural gas transportationhave been coined at the National Energy Board.

FERC Chairman Curt Hebert, a former chairman of the MississippiPublic Service Commission, assured state regulators last week atNARUC’s winter committee meetings in Washington, D.C., that theCommission will focus intently on clearing the backlog of 2,000cases clogging up the corridors at 888 First Street NE. Heattributed the backlog mainly to the Commission’s attention toCalifornia’s energy crisis.

FERC Chairman Curt Hebert, a former chairman of the MississippiPublic Service Commission, assured state regulators yesterday atNARUC’s winter committee meetings in Washington, D.C., that theCommission will focus intently on clearing the backlog of 2,000cases clogging up the corridors at 888 First Street NE. Heattributed the backlog mainly to the Commission’s attention toCalifornia’s energy crisis.

Northern Border Pipeline filed a stipulation and agreement withthe FERC that settles its pending rate case. The settlement wasreached between the pipeline company, the majority of its customersand FERC staff.