Component

Locational marginal pricing (LMP), a key component of FERC’s massive standard market design (SMD) proposal for U.S. wholesale power markets, will fail in the absence of so-called participant funding for new transmission construction and upgrades, a top official with Southern Co. said last Wednesday.

Distrigas of Massachusetts LLC declared force majeure Friday — which means that it is unable to meet the contract demand of its 20 “or so” customers in New England — only days after the U.S. Coast Guard banned a tanker filled with liquefied natural gas (LNG) and destined for the company’s Everett, MA, terminal from entering Boston Harbor due to safety and security concerns, a FERC spokeswoman said.

Xcel Energy Inc. has filed a proposal with the Colorado Public Utilities Commission to reduce the natural gas component of its Colorado retail rates by $571 million a year. If approved, the gas cost adjustment would reduce the delivered price of gas by more than 40% beginning in October. Under the plan, Xcel would reduce the cost of gas to $2.79/Mcf from the $6.91/Mcf that customers paid last winter during the escalating price swings. The costs are in addition to fixed delivery rates, which include metering, billing and distribution costs, and they vary depending on the customer.

EMK3 reported that after almost three months of operation it has launched the natural gas component of its online energy marketplace, making it the first marketplace on the block to offer domestic buyers and sellers of both oil and natural gas the ability to electronically acquire and sell production at the source, i.e., from the wellhead.

EMK3 reported that after almost three months of operation it has launched the natural gas component of its online energy marketplace, making it the first marketplace on the block to offer domestic buyers and sellers of both oil and natural gas the ability to electronically acquire and sell production at the source, i.e., from the wellhead.

Santa Fe Snyder Corp. of Houston is high grading its asset basethrough a series of deals. The largest component of the company’sstrategic repositioning is the $160 million purchase of additionaldeepwater Gulf of Mexico interests from Marathon Oil. Santa Febought an additional 33% interest in the Angus/Manatee six-blockcomplex, bringing the total working interest in the Shell operatedfields to 49%. The deal closed Jan. 7. The company said it is alsodisposing of low-profit assets.

California energy regulators yesterday identified 10 items forpotential natural gas industry restructuring, most of which dealwith wholesale or large customer operations. State regulators alsoencouraged utilities and large customers to cease their bickeringand come up with a broad-based settlement on gas unbundling.

Westcoast Energy said its St. Clair Pipelines subsidiary filedthe last major component required for the Millennium Pipelineproject yesterday with the National Energy Board in Canada. Thecompany filed an application for a $165 million pipeline that wouldlink Union Gas’ Dawn Hub in Ontario to lake crossing facilities tobe built by TransCanada. TransCanada filed an application for thelake crossing facilities earlier this week. St. Clair’s 50-mileMillennium West Pipeline would deliver about 700 MMcf/d of gas toPatrick Point on the shores of Lake Erie.