Defends

Having been singled out by California’s governor for “price-gouging” during recent rolling blackouts for charging $1,900/MWh for some emergency spot market supplies, Houston-based Reliant Energy’s wholesale businesses President/COO Joe Bob Perkins fought back Friday, crying foul, but drawing short of saying his company would seek any legal action against the confidentiality of its bulk power transactions being apparently violated by state officials.

Southern California Gas Co. revealed plans last week to expand several receipt points by 150 MMcf/d despite its own claims that inadequate takeaway capacity at the Southern California border had nothing to do with the record spot price increases there this winter.

Despite claims that inadequate takeaway capacity at the SouthernCalifornia border had nothing to do with the record spot priceincreases there this winter, Southern California Gas Co.,nevertheless, plans to expand several receipt points by 150 MMcf/d.

California still faces a very uncertain electric supplysituation during peak-demand times this summer, and a massiveconservation effort about to be introduced by Gov. Gray Davis.Davis’ plan will impact all local government and businessesstatewide, and it may be the only way to avoid rolling blackouts,according to the state’s chief negotiator for long-term powercontracts.

Tossing aside criticism that California’s new-found reliance onlong-term power contracts may over time cost consumers billions ofdollars extra for electricity, the state’s chief negotiatorThursday defended his work, arguing no one can predict where powerprices will be five and 10 years from now.

Rep. Joe Barton (R-TX) last week defended President Bush’senergy policy strategy against criticism that it’s fixated ondrilling in the Alaska arctic while giving short shift to thenation’s more pressing energy concerns.

FERC last week reaffirmed the bulk of Order 639 in which it isattempting to bring about some consistency to the regulation ofnatural gas pipelines on the Outer Continental Shelf (OCS) byimposing similar reporting burdens on all facilities. It also madea few nips and tucks in the OCS order, especially with respect thefiling date for the reports and and the types of shippers that areexempted.

FERC last week reaffirmed the bulk of Order 639 in which it isattempting to bring about some consistency to the regulation ofnatural gas pipelines on the Outer Continental Shelf (OCS) byimposing similar reporting burdens on all facilities. It also madea few nips and tucks in the OCS order, especially with respect thefiling date for the reports and and the types of shippers that areexempted.

In its new two-part capacity allocation proposal filed at FERC lastweek (See Daily GPI, Feb. 11) El Pasoestimates it will be able to assign “pathed” or very firm rights to3,590 MMcf/d out of the 5,100 MMcf/d of contract demand and billingdeterminants applicable to its firm transportation agreements.