Consumer

Large natural gas end-users, consumer advocates and environmentalists have raised a cry about exporting U.S. liquefied natural gas (LNG) to Asian and European markets, but one power generator executive wonders why no one is questioning increasing pipeline exports of gas to Mexico.

Michael Peevey, long-time president of the California Public Utilities Commission (CPUC) is under fire from state utility consumer group The Utility Reform Network (TURN) for allegedly railroading through the commission a research project that could cost private sector energy customers up to another $150 million. TURN is urging state lawmakers to “rein in” Peevey for apparently pushing through CPUC an arrangement between Lawrence Livermore National Laboratory (LLNL) and the state’s major investor-owned utilities to create a cooperative research institute. CPUC plans on Thursday to consider authorizing the utilities to cover research project costs with LLNL of up to $152.19 million.

Natural gas pipelines, distributors, producers, industrials and a process consumer group are protesting the revised tariff records that Texas Eastern Transmission LP (Tetco) has submitted to FERC, which would exempt it from providing full reservation charge credits to shippers in cases where it is required to interrupt service to comply with new government safety and environmental regulations.

Natural gas pipelines, distributors, producers, industrials and a process consumer group are protesting the revised tariff records that Texas Eastern Transmission LP (Tetco) has submitted to FERC, which would exempt it from providing full reservation charge credits to shippers in cases where it is required to interrupt service to comply with new government safety and environmental regulations.

The Federal Energy Regulatory Commission approved the requests of Wyoming Interstate Co. (WIC) Questar Overthrust Pipeline and Rockies Express Pipeline (REX) for temporary waivers of capacity-release regulations, clearing the way for the permanent release of off-system capacity held on WIC’s pipeline to certain shippers. The capacity-release transactions are a one-time basis only and have to be done within 90 days. WIC currently holds 200,000 Dth/d of off-system capacity on REX and has three transportation agreements for capacity on Questar Overthrust to provide shippers on its system seamless transportation service. A breakdown of the agreements held by WIC on Overthrust includes 365,000 Dth/d through 2017; 190,00 Dth/d from November 2018 to September 2020; and two contracts for 120,000 Dth/d and 40,000 Dth/d, both of which run through 2020, according to Overthrust’s waiver request. WIC is proposing to release permanently all or a portion of the reserve capacity that it holds on Overthrust. With respect to the capacity on Overthrust, WIC told FERC it has encountered unexpected nominations and scheduling issues that have affected the quality and reliability of service received by WIC shippers. After “actively collaborating” to resolve the issues, “WIC states both pipelines [it and Overthrust] have agreed that the ideal solution is to permanently release WIC’s Overthrust capacity to the respective shippers on whose behalf WIC acquired the off-system capacity.” Three shippers have expressed an interest in a permanent release of the Overthrust capacity: Occidental Energy Marketing Inc., Marathon Oil Co. and WPX Energy Inc, according to WIC [RP12-1018].”Two of these shippers, Occidental and Marathon, also rely on REX off-system capacity, which WIC acquired on their behalf.

A nonpartisan policy research group in Pennsylvania asserts that the state could have collected almost twice the revenue it has received in impact fees on Marcellus Shale natural gas drilling if it had implemented a severance tax instead.

As the Dodd Frank Wall Street Reform and Consumer Protection Act rules continue to come into focus, trading exchanges are modifying the way they do business in order to better comply with current and anticipated rules and regulations. The latest move came from CME Group, which last week announced the launch of CME Direct, a new technology offering side-by-side trading of exchange-listed and over-the-counter (OTC) markets.

As the Dodd Frank Wall Street Reform and Consumer Protection Act rules continue to come into focus, trading exchanges are modifying the way they do business in order to better comply with current and anticipated rules and regulations. The latest move came from CME Group, which this week announced the launch of CME Direct, a new technology offering side-by-side trading of exchange-listed and over-the-counter (OTC) markets.

The California Public Utilities Commission (CPUC) has named a retired brigadier general Jack Hagan director of the beefed up Consumer Protection and Safety Division (CPSD) at the CPUC. He starts the assignment April 23. Since the San Bruno pipeline explosion, more attention has been focused on this unit in the state regulatory commission. Hagan said his priority will be to “shift safety enforcement” emphasis from compliance to one of “ensuring that all regulated entities operate under a culture based on risk assessment.” Hagan retired in 1999 after 28 years as a Marine Corps infantry officer and was called back to service with the California governor’s Office of Homeland Security in 2003.