Congress

Under increasing pressure from Congress, FERC last week agreed to hold a public conference later this month to address the state of “current and projected” interstate gas pipeline capacity to the California market, as well as explore what is driving the higher gas prices in the southern end of the state.

The Independent Petroleum Association of America won an”impressive” victory when Congress amended the Energy Policy andConservation Act, a victory that may change where exploration andproduction development takes place in the future. The changes, saidIPAA at its recent annual meeting in San Antonio, require theDepartment of Interior to begin a comprehensive inventory ofgovernment-controlled lands on which oil and gas are found.

The Independent Petroleum Association of America won an”impressive” victory when Congress amended the Energy Policy andConservation Act, a victory that may change where exploration andproduction development takes place in the future. The changes, saidIPAA at its recent annual meeting in San Antonio, require theDepartment of Interior to begin a comprehensive inventory ofgovernment-controlled lands on which oil and gas are found.

Any attempt by Congress to re-regulate natural gas prices to putan end to the escalation in wholesale prices seen this year wouldbe a “mistake,” said FERC Chairman James Hoecker, even though hebelieves $4 gas is too high.

In a fiscal year 1999 performance report card submitted toCongress and the White House, the Federal Energy RegulatoryCommission gave itself high marks for furthering competition in thenatural gas and electricity markets, citing the mega gas rule(Order 637), the RTO decision (Order 2000) and its FERC Firstinitiative as proof of its progress.

In a fiscal year 1999 performance report card submitted toCongress and the White House, the Federal Energy RegulatoryCommission gave itself high marks for furthering competition in thenatural gas and electricity markets last year, citing the mega gasrule (Order 637), the RTO decision (Order 2000) and its FERC Firstinitiative as proof of its progress.

As FERC last week was delivering bad news to the Northeast-boundIndependence Pipeline and associated SupplyLink and MarketLinkprojects, the Commission staff was delivering a report to CapitolHill that concluded new pipeline capacity may be needed for theregion within the next three to five years. It didn’t specify howmuch capacity though (See related story).

Key pieces of comprehensive legislation aimed at restructuringthe electric industry could very well come out of both the Houseand the Senate before lawmakers leave for recess in early August,Capitol Hill observers say.

Senate and House lawmakers last week voted out a $15-billionemergency funding measure that, among other things, will give somelong-sought relief to domestic natural gas and oil producers. Thebill is expected to be signed by President Clinton.