Debate

The debate over creditworthiness standards for gas pipeline service has proved to be too contentious so far for the North American Energy Standards Board (NAESB), which told FERC last week that its Executive Committee failed to endorse the entire set of proposed standards at its May 20 meeting. NAESB had planned to send the matter to FERC unresolved, but in a letter to the Commission on Friday, it asked that its deadline be pushed back to June 15 from June 1 so that it could schedule one last vote on the standards on June 5.

Although continuing divisions between old and new heads of the California Public Utilities Commission surfaced, state regulators Thursday approved Southern California Edison Co.’s move to hedge its wholesale natural gas and purchased electrical power costs — although a question of making the power-buying deals more transparent was raised. Hundreds of millions of dollars are involved in the deals.

Although continuing divisions between old and new heads of the California Public Utilities Commission surfaced, state regulators Thursday approved Southern California Edison Co.’s move to hedge its wholesale natural gas and purchased electrical power costs — although a question of making the power-buying deals more transparent was raised. Hundreds of millions of dollars are involved in the deals.

As California was plunged into its second consecutive day of daytime darkness on Tuesday, FERC regulators remained as divided as ever on whether to impose price caps on wholesale power sales in the West to prevent continuing blackouts and price hikes this summer.

Senate and House conferees reportedly are preparing to end two years of congressional debate with the recommendation of an energy bill unworthy of the name. In fact, the compromise bill that was expected to be proposed Tuesday would more aptly be called the pipeline safety and nuclear liability limitation extension bill.

Weighing in on the Alaska pipeline debate and whether government subsidies for Alaska gas production is warranted, Jim Antoine, Minister of Resources Wildlife and Economic Development for the Northwest Territories said treaties, agreements and statutes identified to support gas development 25 years ago are no longer applicable to today’s discussions surrounding an Alaska natural gas pipe. On Sept. 17, Antoine formally asked federal Minister of Natural Resource Herb Dhaliwal to look into the legal status of the 25-year-old agreements.

In an effort to bring energy policy to the forefront of the national security debate, Oklahoma Republican Sen. James M. Inhofe on Friday submitted two major energy bills as amendments to the $340 billion defense spending authorization bill, which is being taken up by the Senate this week. The amendments include Sen. Frank Murkowski’s National Energy Security Act and the energy bill (H.R. 4) House lawmakers passed in July.

In an effort to bring energy policy to the forefront of the national security debate, Oklahoma Republican Sen. James M. Inhofe on Friday submitted two major energy bills as prospective amendments to the $340 billion defense spending authorization bill, which is being taken up by the Senate this week. The amendments include Sen. Frank Murkowski’s National Energy Security Act and the energy bill (H.R. 4) House lawmakers passed in July.

The energy industry managed to maintain operations while in a state of alarm last week following the horrific terrorist attacks that destroyed the World Trade Center, damaged the Pentagon and left hundreds dead in western Pennsylvania. While no damage was done to energy infrastructure other than to those distribution lines in close proximity to the attacks in New York City and Washington, DC, the experience will serve as a wake-up call to the government and the industry that energy security and reliability issues for once shouldn’t take a back seat to other matters.