Challenged

Noting that the challenged oil and natural gas industry currently has a “weak reputation,” ChevronTexaco CEO David J. O’Reilly said the key to restoring confidence is through improved communications, performance and behavior.

Noting that the challenged oil and natural gas industry currently has a “weak reputation,” ChevronTexaco CEO David J. O’Reilly said the key to restoring confidence is through improved communications, performance and behavior.

Defying the Federal Energy Regulatory Commission, California authorities Wednesday challenged the federal panel’s order from last month, which stated that by next year the state must replace its five-member, governor-appointed oversight board at the California Independent System Operator (Cal-ISO) with a larger, “more independent” board of governors. In effect, California officials are telling FERC it has no legal authority to force the state to do so.

Power plant builder, The Shaw Group Inc. suffered two major blows from financially-challenged merchant power producers last week, buying out one project from NRG Energy and halting construction on another at the direction of Mirant Corp.

Liquidity-challenged energy merchants looking for ways to pay down debt may hear a knock at the door from Baltimore-based Constellation Energy Group in the very near future — if it hasn’t happened already. Many of the best opportunities, especially the power plants, have fallen below book value in just a few weeks, and they offer an especially attractive buy, CEO Mayo Shattuck III told analysts during a conference call Wednesday.

El Paso Natural Gas and affiliate El Paso Merchant Energy have challenged FERC’s decision last month to re-open an investigation into allegations that the bidding for transportation capacity on the pipeline’s system was skewed to favor its merchant power generation affiliates.

California regulators and others are seeking a suspension of Williams Energy Marketing & Trading Co.’s authority to charge market-based rates for wholesale power transactions in the western region, claiming that the marketer possesses market power and is flagrantly abusing it.

The Maine Public Utilities Commission and United IlluminatingCo. separately have called on FERC to order the New EnglandIndependent System Operator to disregard the extremely high bidprice for power that was purchased from a New York supplier andpermitted to set the market clearing price for energy in NewEngland during a heat wave last May.

Southern Union Co. has challenged Oneok Inc. to a joint meetingwith law enforcement agencies to review allegations of wrongdoingagainst both companies related to their competing bids to acquireSouthwest Gas Co. last year. Southern Union said Oneok has notresponded to its offer.