Conservation

California’s fledgling Consumer Power and Conservation Financing Authority (power authority) last week continued its breakneck start-up, announcing its pursuit of various gas-fired and renewable power generation projects that are aimed at giving the state another 3,000 MW online by next summer. In addition, the power authority said it has posted on its web site (www.capowerauthority.ca.gov) a draft request for bids for microturbine, solar and fuel cell projects.

Legislation in California that created the California Consumer Power and Conservation Financing Authority allows the new authority to engage in certain activities that may require FERC’s approval or, in certain cases, make the authority subject to the Commission’s jurisdiction.

Less than a week after California’s governor plucked David Freeman to head the state’s stepped up, $850 million energy conservation program, the nation’s largest municipal utility in Los Angeles turned to a consultant and former head of a Texas private sector utility to replace Freeman as its general manager. Texan-turned-California-based consultant, David Wiggs Jr. will oversee the $3 billion LA Department of Water and Power (LADWP) for five months, beginning May 1. During that time it is expected that the incoming new LA mayor will launch a nationwide search for a permanent replacement for Freeman, who has attained near-star status at LADWP and in other roles helping Gov. Gray Davis wrestle with the ongoing crisis among investor-owned utilities in the state. A utility regulatory lawyer with a finance background, Wiggs served as chairman, COO and president of El Paso Electric Co., leading the utility’s turnaround in the early 1990s. Since 1997, he has been a consultant, at DHW Consulting of Newport Beach, CA,working briefly with DWP in the spring of 1997 before Freeman was brought on board. He recently served as chief energy adviser to the speaker of the state legislature’s Assembly.

The pace of stopgap measures for California’s expected powershortages this summer picked up Tuesday with the governorannouncing rebates to customers cutting their summer power use by20% and Calpine Corp. striking an immediate two-month deal forproviding 550 MW to southern California markets starting todaythrough May 15. The short-term power pact is an interim one withthe state water resources department.

Even with stepped up state efforts for developing peakingplants, conservation and new power contracts, the key wild card forwhether California survives this summer’s expected supplyshortfalls is fickle hydroelectric power that is tied to anunpredictable, complex set of weather and environmental factors.With the end nearing for the West’s typical rainy season, stateofficials are newly optimistic about California’s hydro resourcesbeing at normal levels this summer, but in the Pacific Northwestthe prospects continued to be dour Monday as Seattle basked insunny, 60-degree weather.

The Colorado Oil and Gas Conservation Commission has approvedBarrett Resources’ proposal to drill one well per 20 acres withinthe company’s 9,000 acre Rulison, Parachute, and Grand Valleyfields located in the Piceance Basin of western Colorado. With thisruling, Denver-based Barrett expects to add 143 Bcf of proved gasreserves from the allotted 134 well sites by the end of 2000.

The Colorado Oil and Gas Conservation Commission has grantedBarrett Resources’ proposal to drill one well per 20 acres withinthe company’s 9,000 acre Rulison, Parachute, and Grand Valleyfields located in the Piceance Basin of western Colorado. With thisruling, Denver-based Barrett expects to add 143 Bcf of proved gasreserves from the allotted 134 well sites by the end of 2000.

FERC gave CNG Transmission a slap on the hand and ordered it tohonor North American Energy Conservation’s (NAEC) right of firstrefusal (ROFR) on 13,350 Dth/d of firm transportation capacity for atleast one year. But the Commission also intends to take a closer lookat CNG’s capacity reservation and posting practices and wants thepipeline to explain why it discriminated against NAEC in awarding thecapacity to another shipper (see Daily GPI, Sept. 8).

North American Energy Conservation Inc.’s (NAEC) complaintaccusing CNG Transmission Corp. of ignoring its claim to right offirst refusal (ROFR) for expiring capacity is a last-ditch effortto win the capacity back, the pipeline said.