Credit

Seeking some credit for helping resolve California’s wholesale energy price and supply crisis last year, Southern California Gas Co. said at year-end that it “did everything in its power” to increase access and availability of natural gas supplies in the state, marking its tenth consecutive year of avoiding curtailments to its 5.1 million customers. (Its affiliated utility in the Sempra Energy companies, San Diego Gas and Electric Co., however, did curtail some of its largest industrial customers, including two power plants, on two separate occasions last winter.)

Financial analyst Curt Launer of Credit Suisse First Boston has called on FERC to exercise “extreme caution over the next few months” in its regulatory rulings to avoid sending the already-embattled energy market into a further tailspin and compounding the uncertainty on Wall Street.

Financial analyst Curt Launer of Credit Suisse First Boston has called on FERC to exercise “extreme caution over the next few months” in its regulatory rulings to avoid sending the already-embattled energy market into a further tailspin and compounding the uncertainty on Wall Street.

Volumes and transactions have soared on IntercontinentalExchange (ICE), as Enron’s financial troubles have mounted causing credit concerns for counterparties on its online trading system, EnronOnline. ICE reported record volumes in the second week of November.

Volumes and transactions have soared on IntercontinentalExchange (ICE), as Enron’s financial troubles have mounted causing credit concerns for counterparties on its online trading system, EnronOnline. ICE reported record volumes last week in its strongest weekly performance in its 13-month history.

FERC commissioners last Thursday agreed to order Carolina Power & Light (CP&L) to credit revenue from energy imbalance penalties to “non-offending transmission customers,” emphasizing that this is a policy switch which will be imposed in any cases going forward. The move puts power transmission penalties on the same footing as gas transportation penalties.

Still holding on to the collateral of its 70-odd participants inthe form of letters of credit and bonds worth hundreds of millionsof dollars, California’s state-chartered nonprofit wholesale spotmarket for electricity, Cal-PX, chose a Chapter 11 bankruptcyfiling last week because of the preponderance of litigation andfederal regulatory actions pending, its CEO George Sladoje saidMonday.

Western Natural Gas, a Denver-based marketing company, isphasing out its retail marketing business in the face of increasingnatural gas prices and the capital requirements necessary to obtainsupplies.

Things are looking up, at least a little, for offshore rigutilization, according to Duff & Phelps Credit Rating Co.(DCR). The firm says operating rates have increased steadily overthe past 12 months as drilling day rates for a shallow waterjack-up rig have risen from a low of $22,000 to current levels ofaround $50,000. Offshore rig utilization has also steadilyincreased from a low of 72% during the summer of 1999, to 81% inFebruary 2000. Oil prices are averaging better than $20/barrel andOPEC countries continue to adhere to new, reduced productionquotas, resulting in lower reported crude oil supplies. Also,according to Oil & Gas Journal, natural gas energy consumptionis projected to increase 8.4 % by 2002.