Decision

FERC last Monday rejected Trunkline Gas Co. LLC’s request to rehear a decision ordering the pipeline to stop using “critical notices” and operational flow orders (OFOs) to impose long-term restrictions on the quality of natural gas entering its system.

FERC on Monday rejected Trunkline Gas Co. LLC’s request to rehear a decision ordering the pipeline to stop using “critical notices” and operational flow orders (OFOs) to impose long-term restrictions on the quality of natural gas entering its system.

The decision by the Securities and Exchange Commission (SEC) to launch a formal inquiry into oil and gas reserves overbooking by Royal Dutch/Shell Group may lead to a broader investigation of other producers’ proved and probable numbers. Since Shell first disclosed the overbooking in January, several other oil and gas producers have revised their proved and probable numbers also, including El Paso Corp.

Against the backdrop of a recent decision by Connecticut Attorney General Richard Blumenthal to investigate the actions of power suppliers during this month’s bone-chilling freeze that covered much of the Northeast, FERC Chairman Pat Wood last Wednesday told reporters that he has seen no indications that the power market in New England was manipulated.

FERC Chairman Pat Wood last Wednesday said that the recent decision by various utilities to halt work on the proposed TransLink Transmission Co. is a “horrible outcome,” adding that he hopes that activities related to forming a transmission entity in the Mid-Continent Area Power Pool (MAPP) region can be revived.

FERC’s decision last week to set for hearing a proposal by Oklahoma Gas & Electric Co. (OG&E) to purchase a majority stake in a power plant from an affiliate of NRG Energy “in no way concludes our efforts to pursue this acquisition and the savings that it will deliver to our customers,” OGE Energy’s chairman said.

NiSource subsidiary Northern Indiana Public Service (NIPSCO) has filed a motion for clarification of an order issued by Indiana regulators in September that will require the utility to refund gas customers $3.8 million and make significant modifications to its use and valuation of gas storage, and its hedging and gas volatility mitigation measures. It was the first time Indiana regulators had ordered a refund based on NIPSCO’s purchased gas adjustment (PGA) mechanism.

Despite continued declines from the once prolific Ladyfern field, Canadian Natural Resources achieved higher natural gas production and set a record for gas sales in the second quarter, with credit given to its successful exploitation program in Northwest Alberta. However, an Alberta regulatory requirement to shut in some gas production beginning Sept. 1 will drop the independent’s gas production at least 15-20 MMcf/d, with another 5-10 MMcf/d loss possible, depending on an appeal now being sought by the company.

Stemming in part from the decision to discontinue its telecommunications business, TXU posted second quarter 2003 earnings of $105 million, or $0.31 per diluted share of common stock, compared to $195 million, or $0.73 per diluted share of common stock, recorded for the second quarter of 2002. The company announced its intent to sell its telecommunications business in May and expects the sale to be completed during the first half of 2004.