Clarity

While the overall infrastructure in the state is generally in pretty good shape, additional natural gas storage is needed, along with more clarity on the issues of liquefied natural gas (LNG) and risk management, according to Sean Gallagher, the energy division director at the California Public Utilities Commission (CPUC). Gallagher made his remarks last Monday during a wide-ranging interview with NGI.

While the overall infrastructure in the state is generally in pretty good shape, additional natural gas storage is needed, along with more clarity on the issues of liquefied natural gas (LNG) and risk management, according to Sean Gallagher, the energy division director at the California Public Utilities Commission (CPUC). Gallagher made his remarks Monday during a wide-ranging interview with NGI.

Adding a little clarity Friday to Constellation Energy Group’s decision to call off its $31 billion merger with FPL Group earlier in the week (see Daily GPI, Oct. 26), CEO Mayo A. Shattuck said that a “perfect storm” of political and energy price events led to the cancellation. During a conference call with analysts, he said the company saw “no clear path to completion” of the deal and “no events on the horizon” that would have cleared up the uncertainty.

Citing the highly public jurisdictional spat between it and the state of California, the Federal Energy Regulatory Commission has called on Congress to modify Section 3 of the Natural Gas Act (NGA) to make “clear and unambiguous” that FERC has exclusive authority over the siting of liquefied natural gas (LNG) import terminals onshore and in state waters, as well as over pipeline facilities that deliver gas from the LNG terminals.

Citing the highly public jurisdictional spat between it and the state of California, the Federal Energy Regulatory Commission has called on Congress to modify Section 3 of the Natural Gas Act (NGA) to make “clear and unambiguous” that FERC has exclusive authority over the siting of liquefied natural gas (LNG) import terminals onshore and in state waters, as well as over pipeline facilities that deliver gas from the LNG terminals.

California’s governor virtually bypassed energy issues in his state of the state message last week and information on energy plans is expected to emerge slowly, along with indications from the state legislature on whether separate new comprehensive energy bills will be pushed separately by the Democratic majority and Republicans.

Beginning with Wednesday night’s state-of-the-state address by California Gov. Arnold Schwarzenegger, more information on the state’s energy plans are expected to emerge, along with indications from the state legislature on whether separate new comprehensive energy bills will be pushed separately by the Democratic majority and Republicans. Speculation is high since the governor named two new members of the California Public Utilities Commission late last month.

Contrary to FERC staff’s conclusion in its western energy market report, the CAISO and now-defunct Cal-PX Market Monitoring and Information plans (MMIPs) did not offer market participants “sufficient notice” as to what conduct was allowed or prohibited in California, or clearly state that violators would be subject to retroactive sanctions by the Commission, Duke Energy contends.

A producer group has asked FERC to identify the negotiated-rate transportation contracts that will be subject to refunds as a result of action the Commission took against Transwestern Pipeline last month. The Enron pipeline was ordered in mid-July to pay shipper refunds for excess negotiated-rate transportation charges levied during the California energy crisis, which at times reached 100 times the maximum regulated rate. The agency also stripped Transwestern of its authority to negotiate rates based on basis differentials for an entire year (See Daily GPI, July 18).