Citing high linepack on its system, Tennessee issued a Critical Period-Imbalances alert Friday. Excessive positive imbalances could jeopardize its operational integrity, the pipeline said. All LMS and SA contracts must be nominated and scheduled in balance to avoid the necessity of (1) adjusting receipts or deliveries; and/or 2) issuing a systemwide OFO, Tennessee said.
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Brownell: Energy Markets ‘Poisoned’ by Enron, CA
The Federal Energy Regulatory Commission’s investigation into the possible manipulation of energy prices is a critical first step toward wiping away some of the taint that blankets the entire energy industry in the wake of the Enron Corp. financial scandal and the energy deregulation flop in California, said Commissioner Nora Mead Brownell last week.
Brownell: Energy Markets ‘Poisoned’ by Enron, CA
The Federal Energy Regulatory Commission’s investigation of possible manipulation of energy prices is a critical first step toward wiping away the taint that blankets the entire energy industry in the wake of the Enron Corp. financial scandal and the energy deregulation flop in California, said Commissioner Nora Mead Brownell.
Transportation Notes
Both Duke Energy-operated pipelines, Texas Eastern and Algonquin, issued Critical System Warnings Sunday saying that based on anticipated system operations and weather conditions, all customers were required to immediately “eliminate excess receipts and conform scheduled receipts to actual deliveries.” The warnings will remain in effect until further notice. Texas Eatern noted that with unseasonably mild weather in the market area and shippers filling contract storage inventories in anticipation of the heating season, its storage capacity is now about 98% full, leaving little system flexibility. If mitigating action isn’t taken, an OFO with non-compliance penalties of $25/Dth may become necessary, the pipeline said. Without specifically mentioning a potential OFO, Algonquin said it may adjust customer nominations and/or revise scheduled quantities to halt further accumulation of imbalances. “In addition, AGT may take any actions within its operational capabilities to reduce excess receipts,” it added. No due-pipe imbalance makeup is being accepted until further notice.
CA Regulators Issue Rate Deal with Power-Buying Agency
In a critical step on the road to financial solvency for the state and two private-sector utilities, the California Public Utilities Commission last Wednesday issued its draft rate agreement with the state water resources department (DWR), which since January has been buying billions of dollars of wholesale electricity for the state. Comments on the draft are due by Aug. 1, and the regulators expect to act on the final document at their regular business meeting Aug. 23.
Transportation Note
Northern Natural reported a critical system overrun limitationfor all of its market area zones for today’s flow. DDVC penaltiesare applicable to the bumped shipper’s quantity.
Calpine Stakes Canadian Presence, Doubles Reserves
Calpine will more than double its natural gas reserves and gaina critical transportation link between the United States andwestern Canada after agreeing yesterday to pay $1.2 billion topurchase Calgary-based Encal Energy Ltd., whose core natural gasdrilling operations are in northeastern British Columbia and westcentral Alberta. Power producer Calpine plans a stock-for-stockexchange and would assume Encal’s debt.
PG&E Barely Hangs on, Gas Supply Situation Still Critical
Wednesday dawned with a combination of relief and continuingconcern over gas supplies for the northern half of California inthe wake of the federal emergency order expiring at midnightTuesday. The expiration left Pacific Gas and Electric Co. stillscrambling to get its main suppliers to extend current contractsinto the coming weeks and months. State regulators are expected torule today on a PG&E request for emergency supplies fromSouthern California Gas Co., something the latter utility isstrongly opposing.
TransCanada Toll Issues Considered Critical
While still new in Canada, competition has escalated in naturalgas transportation to the point where some big shippers say theyface a “rate shock” of steep toll increases later this year. TheCanadian Industrial Gas Users Association says “disruptive” hikesare coming unless TransCanada PipeLines Ltd. is immediately bailedout with an “interim” raise to spread its losses from its rivalsover all of 2001.
TransCanada Toll Issues Critical
While still new in Canada, competition has escalated in naturalgas transportation to the point where some big shippers say theyface a “rate shock” of steep toll increases later this year. TheCanadian Industrial Gas Users Association says “disruptive” hikesare coming unless TransCanada PipeLines Ltd. is immediately bailedout with an “interim” raise to spread its losses from the rivalrythinner over all of 2001.