Continuing

California’s governor weighed in more forcefully last week inthe continuing summer electricity rate shock plaguing the southernend of the state and calling into question the future of thestate’s four-year electric industry restructuring. A virtual flurryof state activity is expected this week at four different stateagencies and at the state legislature, which returns from a summerrecess.

Power reserves were short again yesterday during a continuingheat wave in California, and the state’s independent systemoperator (ISO) had to declare a stage one emergency, meaningreserves were below 7% of expected peak demand, or about 3,000 MW,outages were possible and electricity conservation was a priority.

After two marketer bankruptcies, slamming problems, continuingbilling problems and higher gas rates, Georgia gas deregulation is”in deep, deep trouble,” Georgia PSC Commissioner Bob Durden saidyesterday in an interview with NGI.

El Paso declared an Unauthorized Overpull Penalty situationWednesday, effective until further notice. System linepack wascontinuing to decline despite withdrawals from Washington RanchStorage Field, the pipeline said. It will limit scheduled volumesat underperforming interconnects to insure system integrity.

El Paso extended completion of Gallup Station maintenance thatbegan June 10 through today, continuing a reduction of San JuanBasin capacity by 250 MMcf/d. The Gallup C turbine will remain downas originally scheduled through June 20. However, because othermaintenance actions may delay the station’s return to fulloperation, a San Juan capacity reduction of 200 MMcf/d startingSaturday may last as long as June 22, a spokesman said.

The continuing public split between the nation’s largestmunicipal utility and California’s nonprofit, state-charteredtransmission grid operator is widening with finger-pointinginvolved in the plans for heading off potential power shortagesthis summer. Left unresolved is the more than two-year-olddiscussion attempting to bring the Los Angeles Department of Waterand Power (LADWP), a transmission- and generation-rich muni, intothe state’s fold.

The continuing public split between the nation’s largestmunicipal utility and California’s nonprofit, state-charteredtransmission grid operator is widening with finger-pointinginvolved in the plans for heading off potential power shortagesthis summer. Left unresolved is the more than two-year-olddiscussion attempting to bring the Los Angeles Department of Waterand Power (LADWP), a transmission- and generation-rich muni, intothe state’s fold.

Nevada government officials are continuing to push ahead withlicensing of nonutility electricity service providers and otheraspects of restructuring the state’s power industry, despitefederal and state court challenges by the two incumbent utilitiesthat promise to delay implementation of a more competitiveelectricity market by up to 18 months.

Continuing its aggressive acquisitions strategy, Atmos EnergyCorp. said last week it has reached a definitive agreement to pay$375 million for the gas operations of two Citizens Utilities Co.distribution subsidiaries – Louisiana Gas Service Co. and LGSNatural Gas Co. Atmos said the acquisitions will make it thelargest natural gas distributor in Louisiana with 359,000customers.