Costs

National Fuel Gas Supply Corp. (NFG) allegedly overcharged transportation and storage customers about 17.36 Bcf (or 17.88 MMDth) in fuel costs over the five years from 2000 through 2004 and still continues overcharging customers today, according to a complaint and motion for summary disposition filed at FERC by the Public Service Commission of New York, the Pennsylvania Public Utility Commission and the Pennsylvania Office of Consumer Advocate. The Williamsville, NY-based utility vowed to fight the complaint, saying that its fuel percentages have been in place and in public view for more than a decade.

Driven by continuing high wholesale natural gas costs and demand for infrastructure upgrades for both gas and electric utility distribution systems, Bellevue, WA-based Puget Sound Energy (PSE) late Wednesday filed with state of Washington regulators for a combined gas and electric rate increase collectively totaling $200 million in added revenues. This is PSE’s second general rate case filing in less than two years, and the regulatory review process may take up to 11 months.

An engineering review has shaved about 4% off forecast costs of the proposed Mackenzie Valley Pipeline and reduced its environmental footprint, the sponsors have told Canada’s National Energy Board.

The Energy Information Administration (EIA) in November has revised downward its projection on rising winter heating costs. Bills for households fueled by natural gas are now expected to rise 41% ($306 more per household) rather than the 48% hike ($350 more per household) EIA predicted in October.

California’s energy future is balanced precariously between runaway costs and the threat of severe shortages, particularly in a “hotter-than-average” summer, according to the California Energy Commission’s (CEC) draft 2005 “Integrated Energy Policy Report,” released last Friday. Touching on everything from global climate change to the cost of gasoline and growing reliance on natural gas, the 157-page report delivers a sobering message for Californians.

Mexico’s President Vicente Fox this week announced a series of steps that he said will reduce the country’s energy costs as well as its dependence on foreign energy supplies. Among other things, Fox wants to change Mexico’s constitution to allow more private investment in natural gas exploration.

To cover the effect of higher natural gas costs, the Missouri Public Service Commission (MPSC) has approved rate increases for Southern System and Northern System natural gas customers of Aquila Networks-MPS effective Monday (July 18). The Southern affiliate services 32,000 gas customers, while the Northern affiliate serves 11,200 across the state.

Shell doubled its costs estimates and pushed back the commercial service date for the Sakhalin II Phase 2 LNG project on Thursday. The company said in May that the project would cost $10 billion, but it now estimates its cost at $20 billion. LNG deliveries to the Costa Azul terminal in Baja California Norte, meanwhile, have been delayed until summer 2008 from November 2007.

Kansas regulators on Monday approved a 2.4% rate increase settlement, or $2.7 million, for Aquila Inc. to recover the costs of investments that it made in the company’s natural gas transmission and distribution operations that service 104,000 customers in the state.