Contracts

With Capitol Hill feeding reporters a steady diet of Enron Corp. stories last week, it fast became the issue du jour. Who’s kidding who, it was the only story in a town that thrives on scandals — real or imagined. In fact, there was such a rapid fire of “new” disclosures about the energy trader’s financial sleight of hand, outside auditor Arthur Andersen’s extracurricular activities, and the Bush administration’s ties and Capitol Hill lawmakers’ links to the bankrupt corporation, that somewhere along the way last week it became one big blur.

Consumers may want to review their gas supply options as their current contracts expire, the Ohio Consumers’ Counsel (OCC) advised, following up on announcements late last month that Columbia Gas of Ohio and Dominion East Ohio have filed requests to lower their regulated gas rates for the upcoming quarter beginning October 26.

Consumers may want to review their gas supply options as their current contracts expire, the Ohio Consumers’ Counsel (OCC) advised, following up on announcements late last month that Columbia Gas of Ohio and Dominion East Ohio have filed requests to lower their regulated gas rates for the upcoming quarter beginning October 26.

FERC last week denied rehearing of a June order that permits Arizona Public Service Co. to assign its full-requirements (FR) capacity contract on El Paso Natural Gas to affiliate Pinnacle West Energy to serve a new gas-fired generation facility that it is building in Arizona. On the surface, it seemed a clear victory for the companies involved. However, Chairman Pat Wood made it very clear that he has concerns about FR service on El Paso, which entitles customers to unlimited capacity at frozen rates, and that he plans to take up the issue at a later date.

FERC denied rehearing of a June order that permits Arizona Public Service Co. to assign its full-requirements (FR) capacity contract on El Paso Natural Gas to affiliate Pinnacle West Energy to serve a new gas-fired generation facility that it is building in Arizona. On the surface, it seemed a clear victory for the companies involved. However, Chairman Pat Wood made it very clear that he has concerns about FR service on El Paso, which entitles customers to unlimited capacity at frozen rates, and that he plans to take up the issue at a later date.

Duke Energy Trading and Marketing LLC has signed a contract to receive load following and load balancing services from Houston-based Falcon Gas Storage Co. Inc. for the 245 MW Encogen Power Plant located near Abilene, TX. Duke is the fuel manager for the plant, which will be served by Falcon’s Hill-Lake gas storage facility in Eastland County, TX.

Duke Energy Trading and Marketing LLC has signed a contract to receive load following and load balancing services from Houston-based Falcon Gas Storage Co. Inc. for the 245 MW Encogen Power Plant located near Abilene, TX. Duke is the fuel manager for the plant, which will be served by Falcon’s Hill-Lake gas storage facility in Eastland County, TX.

The trappings of a major press conference made it appear like a long-sought ending, but it was really just the beginning late Monday afternoon when California’s governor and Southern California Edison’s CEO announced a breakthrough after six weeks of talks. The “memorandum of understanding” (MOU) for the sale of Edison’s transmission system and power production to the state is contingent on state regulators and legislators swiftly completing some equally significant steps.

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.