Creates

FERC Chairman Pat Wood last Wednesday said that electric reliability tops his agency’s agenda in 2004, and to that end, the Commission is moving to establish a new unit that will be responsible for reliability-related audits.

House Speaker J. Dennis Hastert (R-IL) announced last Thursday the creation of a task force that would recommend short-term solutions to head off a potential natural gas supply deficit later in the year.

Energy Secretary Spencer Abraham announced last week that the Department of Energy (DOE) will award $89.4 million to 19 states to weatherize the homes of low-income families to save energy as the nation faces a potential natural gas supply shortfall in the months ahead. The weatherization year for the 19 states took effect July 1.

Energy Secretary Spencer Abraham announced this week that the Department of Energy (DOE) will award $89.4 million to 19 states to weatherize the homes of low-income families to save energy as the nation faces a potential natural gas supply shortfall in the months ahead. The weatherization year for the 19 states took effect July 1.

TransCanada Corp. said that the plan of arrangement to establish it as the parent company of TransCanada PipeLines Ltd. has received all necessary regulatory approvals and certificates. As a result, the agreement went into effect Thursday.

A merger by Calgary-based independents Canadian Natural Resources Ltd. and Rio Alto Exploration Ltd. will create the fourth largest natural gas producer in North America in a deal valued at C$2.4 billion ($1.54 billion). As a result of the merger, Canadian Natural expects to produce between 1,500-1,560 MMcf/d in the second half of 2002. Canadian Natural’s natural gas exposure will increase to 55% of its total production base on a barrel of oil equivalent basis, while at the same time giving it natural gas development opportunities in a new core region in Northwest Alberta.

The cash market began what several sources believed could be a fairly lengthy period of downward price consolidation Wednesday. Numbers generally fell between a dime and 20 cents in eastern markets and at Permian Basin/Waha and Pacific Northwest points, while other western prices took an even heavier beating.

Amid a buzz about higher retail rates and the need to conserve to cut down on summer’s looming blackouts, California Gov. Gray Davis Wednesday signed a new law (SB 6X) creating the “California Consumer Power and Conservation Financing Authority,” which will have broad powers to construct, own and operate electric generation and power facilities and finance energy conservation programs. The law becomes effective in 90 days.

The “desperation” by utilities to consolidate, mutate or get outof the business altogether is a good thing, said utilities analystDaniel Ford of ABN AMRO, because this fear is where most of thestock values are now being created. Ford, a keynote speaker at lastweek’s PowerMart 2000 in Houston, called investors a “ficklebunch,” but added they are sticking with utility stocks.