In an effort to assist the Northwest meet its needs during the current energy shortage out West, the Bonneville Power Administration plans to establish a short-term policy that will encourage the immediate addition of electricity generation to help the region until planned long-term generation can be built. While the BPA will not fund construction of the generators nor buy the output, BPA said that the policy complements the load reduction strategy it has with its customers. In addition, BPA noted that customers who reduce their load on BPA by 10% would be allowed to use temporary small generators to supply a small portion of their needs. The agency has asked its customers to reduce their demands on BPA so that it can avoid expensive large power purchases in the wholesale market. Such purchases could lead to a triple-digit wholesale rate increase this October, according to BPA (see Daily GPI, April 11). The temporary policy would run from June 1, 2001 through Sept. 30, 2002. But the BPA said that before it implements the policy next month, it wants to hear from the public on the details of the plan. A public meeting on BPA’s proposed policy is scheduled for May 24 at BPA headquarters in Portland, OR.
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Transportation Notes
Sonat reported seeing no significant reduction in nominated supply from Thursday’s gas day to the one today. Based on current nominated supply and projected demand, system requirements will exceed storage injection capabilities today, it said. Thus, unless supplies are cut back significantly today, it’s “highly likely” that an OFO Type 6 will be issued for Saturday’s day, Sonat said.
Edison Testifies; Gov. Signs $1.2 billion Conservation Laws
Southern California Edison’s current precarious financial position would have been avoided if federal and state regulators had done their jobs, an Edison regulatory attorney told a congressional committee in San Jose on Wednesday in the second day of a three-day sweep through California. The hearings by the House Government Reform Committee conclude in San Diego today.
Study Sees New Power Plants Eliminating Shortages
The current pace of power plant construction could very well lead to the elimination of generation capacity shortages in practically every U.S. regional power market over the next one to three years, according to a new study recently completed by ICF Consulting.
Study Sees New Power Plants Eliminating Shortages
The current pace of power plant construction could very well lead to the elimination of generation capacity shortages in practically every U.S. regional power market over the next one to three years, according to a new study recently completed by ICF Consulting.
Most Points End the Week with Double Digit Increases
Following closely on Thursday’s minor futures uptick, most cashpoints on Friday barely managed double digit gains in a relativelyquiet day of trading. The Northeast and Midwest took the lead onthe plus side, but the West once again stole the show with declinesof more than $8 at the SoCal Border and more than $2 at PG&ECitygate as power demand declined for the holiday weekend.
Northern CA Sole Exception to Soaring Weekend Prices
Prices soared everywhere Friday except in Northern California asmore bullish weather forecasts and current conditions, along with asecond straight day of rising futures, propped up what had been arecently sagging cash market. Nearly all gains were within therange of 50-90 cents.
Transportation Notes
Based on current withdrawal rates, working gas inventory andanticipated load forecast, Questar said Thursday it expects to go intocompressed withdrawal mode at the Clay Basin storage facility withinthe next three to seven days. This prompted concern by Northwest thatsuch an action will cause it “to begin to accumulate unmanageablelevels of condensate liquids at its Green River [WY] compressorstation similar to last year, when Questar had to reduce its confirmedquantities to Northwest” (see Daily GPI,Feb. 14, 2000; Feb. 23, 2000). Bothpipes said they are working together to manage liquids at GreenRiver. Questar noted that to mitigate future impact, it plans to builda dewpoint plant at Clay Basin. Permitting is under way andcompletion is expected in late summer, Questar said. A pipelinerepresentative said “compressed withdrawal” is the difference betweenfree flow, which is the normal operational mode for Clay Basin untilabout mid-January each year, and using compressors to suck gas out ofthe ground. Currently Clay Basin is about 32% full for thenon-Questar-contracted 54 million dekatherms held by seven or eightmajor customers including Northwest, he said. Using compression inwithdrawals heats the gas so it takes longer to cool down and for theliquids to condense out of it; thus the liquids tend to form afterit’s gotten out into the pipeline, he said.
MMS Sets Tentative Eastern GOM Lease Sale Next Year
The Minerals Management Service has scheduled its only Eastern Gulf of Mexico sale in its current five-year leasing plan – and the first proposed sale in the eastern section of the Gulf in more than 12 years. Proposed lease sale 181, scheduled December 2001, would include 1,033 blocks covering 5,949 million acres – about 8% of the total area in the Eastern Gulf Planning Area.
MMS Sets Tentative Eastern GOM Lease Sale
The Minerals Management Service has scheduled its only EasternGulf of Mexico sale in its current five-year leasing plan — andthe first proposed sale in the eastern section of the Gulf in morethan 12 years. Proposed lease sale 181, scheduled December 2001,would include 1,033 blocks covering 5,949 million acres — about8% of the total area in the Eastern Gulf Planning Area.
