Constraints

Barely visible in this time of extreme budget constraints, the California Consumer Power and Conservation Financing Authority (power authority), will reemerge in Sacramento later this month to set the stage for establishing a 22% electricity reserve target for the state next month in one of its first rulemakings as an neophyte state agency spawned by the now long-gone electricity crisis of 2000-2001. One quarter to one half of the new target would come from demand-side management, according to a draft proposal.

Sonat canceled an OFO Type 3 for eight market-area groups and capacity allocations in four other groups Tuesday after the constraints had been in effect for one day.

The Department of Defense (DOD) could potentially reduce demand on the western power grid by generating 90 MW of electricity and implementing conservation initiatives, although the use of DOD assets raises environmental and mission concerns, the General Accounting Office (GAO) recently told Congress. The GAO also said that although significant private back-up generation capacity exists in California its potential use is limited due to business and environmental risks.

The Department of Defense (DOD) could potentially reduce demand on the western power grid by generating 90 MW of electricity and implementing conservation initiatives, although the use of DOD assets raises environmental and mission concerns, the General Accounting Office (GAO) recently told Congress. Meanwhile, the GAO also said that although significant private back-up generation capacity exists in California, its potential use is limited due to business and environmental risks.

Although a lot has been made of California’s gas pipeline and supply constraints, Southern California Gas Co.’s anti-bypass tariff, which has been discouraging the development of new pipelines — particularly Questar’s Southern Trails project — still has not received much political scrutiny.

Although a lot has been made of California’s gas pipeline and supply constraints, Southern California Gas Co.’s anti-bypass tariff, which has been discouraging the development of new pipelines — particularly Questar’s Southern Trails project — still has not received much political scrutiny.

The 2000 cash market was sluggish and weak Tuesday as a fullcomplement of traders finally returned to their offices followingthe New Year’s holiday break. A sharp futures decline coupled withonly moderately cold weather in most regions depressed most pointsby about a dime or more below the levels at which they rang out theold year Thursday.

While power generation demand and constraints on El Paso in theSan Juan Basin kept Western and Rockies prices afloat, general lackof trading activity kept most other markets flat to down a coupleof cents.

Constraints will be minor today at the Opal (WY) processingplant as Williams Field Services begins testing and maintenance.But at least half of the plant’s current 540 MMcf/d activity willbe off the market Tuesday as the plant is shut down for 12 hours.Reductions June 17-24 will be about 75 MMcf/d.