Commission

The Commodity Futures Trading Commission (CFTC) approved a NewYork Mercantile Exchange (NYMEX) application to trade electricityfutures and options based on delivery at the Pennsylvania-NewJersey-Maryland (PJM) western hub.

Mexico’s Energy Regulatory Commission (CRE) issued the Queretarogas distribution permit to Belgian electric utility Tractebel.Tractebel was awarded the permit as a result of the bid processundertaken by the CRE for the geographic zone, which comprises themetropolitan area of Queretaro, as well as the city of San Juan delRio.

Christine Hansen, Interstate Oil and Gas Compact Commission(IOGCC) executive director since 1993, was named to the newCommittee on Natural Gas for the National Petroleum Council (NPC).The committee, formed at the request of U.S. Secretary of EnergyBill Richardson, has been charged with a reassessment of its 1992study “Potential of Natural Gas in the United States,” and willreport back to Richardson by mid-1999.The study will focus on thecapability of the industry to meet growing gas demands and alsowill compare the 1992-98 actual supply-demand with projections madein the 1992 study.

Enron Corp. notified the Securities and Exchange Commission lastweek it is considering an unsolicited offer from an unidentifiedcompany for its 53.5% share of Enron Oil and Gas, one of thelargest independent gas producers in the U.S. According to thesolicitation, the third party would acquire Enron’s shares in EOGand make an offer for all the outstanding shares. It also wouldrequire that Enron dispose of certain other assets.

Mitchell Energy & Development Corp. received approval fromthe Texas Railroad Commission for field rule amendments that willenable the company to more aggressively develop its Barnett Shalegas reserves in North Texas. The new field rules permit Mitchell todrill wells in the Newark East (Barnett Shale) field on as littleas 40-acre spacing. As a result of increased well density, or”in-fill drilling,” the company expects as many as 100 wells withabout 80 Bcf of estimated net gas reserves will be added to theproved undeveloped category. The new locations bring totalundeveloped well locations to about 200 for the field. The companyalso has identified another 100 probable locations that may beadded in the future.

The Ohio Public Utility Commission reported that 280,000 retailconsumers are buying gas from alternative suppliers, a 25% increasesince September. The percentage of eligible customers participatingin the three utility customer choice programs has risen to 21%(34,644 residential and small commercial customers) on East OhioGas, 8% (30,979) on Cincinnati Gas & Electric and 17% (216,900)on Columbia Gas. In total, 24,127 commercial customers and 258,396residential customers are participating.

National Fuel has filed an application with the PennsylvaniaPublic Utility Commission to begin a system-wide customer choiceprogram starting in April. The program would be a major expansionof the company’s current Energy Select pilot in Mercer County, inwhich 19,700 retail gas customers were allowed — actually forced– to choose alternative suppliers beginning in June 1997. Theexpanded program would offer a choice of suppliers to 210,000customers in National Fuel’s 14 county service territory. It alsowould include some significant differences from the Energy Selectpilot.

Elizabeth Anne “Betsy” Moler, former deputy secretary of theU.S. Department of Energy and chair of the Federal EnergyRegulatory Commission, is leaving the public sector for privatepractice at a major law firm. Moler will become a partner and serveas co-chair of Vinson &amp Elkins LLP’s electric power practice. AtVinson &amp Elkins, Moler will focus on the restructuring of theNorth American power industry and on the increasing role ofcompetition in the gas business, both areas where she has played amajor role while in government. “I hope to put my 30 years ofgovernment experience to good use advising private sector clientsas they chart a course through the challenges posed by anincreasingly competitive business environment. Virtually all of myprofessional experience has been in the energy area, so Vinson &ampElkins, with its large and varied energy practice, seems like aperfect fit for me.” Moler played a significant role in FERC’sdevelopment and implementation of Order No. 636 and was chair ofthe FERC when it issued its Order No. 888, which opened thenation’s electric transmission grid. Vinson &amp Elkins has 580lawyers with more than 175 involved in various aspects of itsenergy practice. The firm has offices in Austin, TX; Beijing,Dallas, Houston, London, Moscow, New York, Singapore, andWashington, D.C.

The Supreme Court last Tuesday rejected a petition for writ ofcertiorari filed by the California Public Utilities Commission(CPUC) and Southern California Gas (SoCalGas) after the partiesfailed to meet the deadline. The petitioners, which filed forreview on Nov. 5, missed the deadline by three days. The CPUC andSoCalGas had asked the high court to review a 1996 FERC decision -upheld by the D.C. Circuit Court of Appeals two years later – thatthey claimed amounted to a “power grab” of California’sjurisdiction by the federal agency.