Charges

Contrary to the charges of price gouging in the California market, Duke Energy said Friday its average rates for wholesale power sales over the last 15 months were only $76/MWh, and in the first quarter of 2001 rose to only $136/MWh, both well below average spot market prices for the same periods.

Sen. Dianne Feinstein (D-CA) has asked the Senate Committee on Governmental Affairs to investigate the possibility of an improper relationship between the energy industry and the Federal Energy Regulatory Commission based on an exchange between FERC Chairman Curtis Hebert and Enron Chairman Ken Lay as reported in The New York Times.

Allegations that large capacity-holders on El Paso Natural Gashave deliberately withheld pipeline capacity from the market todrive up gas prices in California, and that the pipeline wasinvolved in a “conspiracy” in 1996 to block new interstate pipecapacity from entering the state are unfounded, said a companyspokeswoman.

Joining in the feeding frenzy that has become California’selectricity rate debate, a San Diego-based utility consumer groupand four law firms last week filed a class action lawsuit against13 major generators, marketers and energy trading companies,charging them with price fixing and market manipulation.

The New York State Public Service Commission has acted to eitherfreeze or decrease the distribution portion of charges to naturalgas customers of Niagara Mohawk Power through Aug. 31, 2003 as partof a multi-year rate and restructuring plan.

The New York State Public Service Commission has acted to eitherfreeze or decrease the distribution portion of charges to naturalgas customers of Niagara Mohawk Power through Aug. 31, 2003 as partof a multi-year rate and restructuring plan.

Canada’s fuel cell industry got a charge this week when theboard of directors of Fuel Cells Canada inaugurated a privatesector, not-for-profit organization designed to offer services andsupport to developers.

Texaco Inc. has agreed to pay $43 million to settle charges byseveral whistleblowers that the firm underpaid royalties due oncrude oil drilled from federal and Indian leases, The U.S. JusticeDepartment said Wednesday. The settlement covers underpayments fromJanuary 1980 to through December 1998. Two former AtlanticRichfield Co. marketing managers brought the lawsuit in the U.S.District Court in Lufkin, TX, and will receive part of the Texacosettlement. The settlement agreement was signed by representativesof several Indian tribes, as well as the federal government. Thegovernment has reached similar settlements on royalty underpaymentswith Mobil, Occidental Petroleum, Chevron, BP Amoco, Conoco, DevonEnergy, Union Pacific Resources and Sunoco.

Southern California Edison filed a motion late last week withthe California Public Utility Commission seeking emergency relieffrom high spot gas prices on which its power purchase rates arebased. The company told the CPUC that Southern California Border(Topock, AZ) prices in the last month have risen by $2.50/MMBtupossibly because of market manipulation, in particular thewithholding off of the market of pipeline transportation capacitybetween the supply basins and the California border.