Pacific Gas and Electric Co. late Friday announced it had reached a settlement with all parties on natural gas transportation and storage costs covering 2008 through 2010. The settlement must be approved by the California Public Utilities Commission (CPUC), and the utility said it expects action before the end of this year.
Covering
Articles from Covering
Sempra Utilities, PG&E Crank Up Gas in Midst of Cold
With temperatures hitting record lows statewide, Sempra Energy’s two utilities covering the southern half of California reported Tuesday sending out substantially larger amounts of natural gas to residential and small business customers over the three-day Martin Luther King holiday weekend. Both Southern California Gas Co. and San Diego Gas and Electric Co. expect demand for January to be more than 20% higher than the same month a year ago.
Husky Expands Holdings in Jeanne d’Arc Basin
Calgary-based Husky Energy has expanded its oil and natural gas holdings in the Jeanne d’Arc Basin by acquiring exploration rights on two land parcels covering about 60 square miles (156 square kilometers). The C$36.5 million nine-year work commitment, obtained through a lease from the Canada-Newfoundland Labrador Offshore Petroleum Board, makes Husky one of the largest landholders in the region.
Washington Regulators Okay Avista Gas, Electric Rate Settlement
Applying conditions still under review, Washington state regulators Wednesday approved a $22.1 million general rate settlement covering Avista Corp.’s electric and natural gas utility operations for 220,000 electricity and 134,000 natural gas customers it serves in the state. Avista and the settlement parties have a week to accept the conditions from the Washington Utilities and Transportation Commission.
Some Dips, But Most Points End Month Higher
Even with cooldowns from record-setting heat firmly established in the Northeast and Midwest market areas and trading covering the Saturday-Sunday period when industrial load typically declines, July-ending prices were rising again at a solid majority of points Thursday. A few flat to lower points crept into the overall mix but the majority of points posted gains ranging from 2-3 cents to about a quarter.
Royal Bank of Canada Pays $25M to Settle Enron Claims
Enron Corp. said Thursday that it will receive $25 million from the The Royal Bank of Canada (RBC) through a settlement agreement covering RBC’s portion of what it called the “MegaClaims” litigation against the major banks for allegedly aiding and abetting the company in breaches of fiduciary duties, fraud and civil conspiracy.
Industry Brief
The Minerals Management Service (MMS) issued a final notice of Western Gulf Lease Sale 196 scheduled for Aug. 17. Sale 196 will include 3,762 unleased blocks covering 20.3 million acres offshore Texas and Louisiana and could result in the production of 136-262 million bbl of oil and 0.81-1.44 Tcf of natural gas. The blocks are located five to 357 kilometers offshore in water depths ranging from eight to 3,100 meters. MMS has increased base rental rates from $5.00 to $6.25 per acre for blocks in water depths of less than 200 meters and from $7.50 to $9.50 per acre for blocks in water depths of 200 meters or deeper, reflecting inflationary adjustments. MMS also warned bidders that an application from Beacon Port LLC for the licensing of a deepwater LNG port in the Western Gulf of Mexico has been received by the U.S. Coast Guard and the Maritime Administration. The proposed LNG facility will affect certain blocks in the High Island and West Cameron Areas.
Dynegy Settles All Class Action Litigation; Still Pursuing Midstream Buyer
Dynegy Inc.’s share price inched up on Friday following news that it had settled all of the shareholder class action litigation brought against the company between June 2001 and July 2002. The settlement could pave the way for a possible sale or merger of the company, which has been rumored to be in the works for several weeks.
GE Maintenance Deal with Atlantic LNG Designed to Boost Production
GE Energy said a new $400 million, 17-year service agreement, covering 27 gas turbines and 47 centrifugal compressors at Atlantic LNG’s liquefied natural gas (LNG) production facility in Port Fortin, Trinidad, would add about a year of LNG production at the plant over the contract’s term.
ChevronTexaco Interim Report Shows U.S. Gas Production Down Slightly
In an interim production report covering April and May, ChevronTexaco reported Thursday that its U.S. oil and natural gas production was roughly flat compared with the first quarter. A small increase in liquids production offset a small decrease in natural gas, the company said.