Clarified

Dynegy last Friday clarified its squabble with Sempra Energy’s San Diego utility unit, contending that it never asked for 18 smaller power plants to be shut down, regardless of orders from the California Independent System Operator (Cal-ISO) to produce electricity during peak demand hours.

El Paso Energy Corp. clarified Wednesday that what used to be knownas Channel Industries Gas, which exploded Monday evening (see DailyGPI, Dec. 6), is now managed by a unitcalled El Paso Energy Intrastate Co. and has not actually changed tothat name. The instrastate unit refers to it as the A-S Line becauseit runs from Agua Dulce to the Sabine River at the Texas-Louisianaborder. The rupture occurred downstream of the Houston Ship Channelwhere most its major customers are located, a spokeswomansaid. Because of supply re-routing or fuel switching, there are stillno service interruptions occurring or expected, she added. Averagerecent throughput was 400 MMcf/d, the spokeswoman said, but the volumeof gas lost to the atmosphere was unavailable.

FERC last week clarified that the controversial “rate reductionmechanism” (RRM) in the capacity contract between Dynegy Marketingand Trade and El Paso Natural Gas is “not an unlawful practice orcontract” under the Natural Gas Act. Commissioner William Massey,however, issued a blistering attack not only against the RRM, butthe entire El Paso-Dynegy transaction.

FERC earlier this week clarified that the “rate reductionmechanism” (RRM) in the capacity contract between Dynegy Marketingand Trade and El Paso Natural Gas is “not an unlawful practice orcontract” under the Natural Gas Act. Commissioner William Massey,however, issued a blistering attack against the RRM and the entireEl Paso-Dynegy transaction.