Delay

Senate Energy Committee Chairman Frank Murkowski (R-AK) onFriday asked President Clinton to delay swearing in Bill Richardsonto head the Department of Energy until the committee has had anopportunity to review allegations that he may have lied during hisconfirmation hearing about a job offer that was made to MonicaLewinsky.

The start of hourly electricity pricing in California isexpected to be delayed because the state chartered wholesaleelectricity spot market is encountering logistical and technicalproblems. The Board of Directors for the state Power Exchange (PX)meets today to determine how far into July to postpone the openingof the new market. A formal announcement on a new target date isexpected to be made following the board meeting.

Backers of Alliance Pipeline Project are going out on a bigfinancial limb by spending heavily to advance the proposed newCanadian export route to Chicago while still awaiting approval fromthe National Energy Board. Alliance president Dennis Cornelsonreported the international consortium of pipelines and producershas spent about C$200 million (US$145 million) to date. But to keepthe project moving quickly enough to fulfill its schedule, thegroup “will have to double that by the time regulatory approvalsare obtained.”

There’s no point in opening the valves on a new pipeline if noone is there to take the gas, Maritimes and Northeast Pipeline toldFERC this week. The pipeline said its only shipper, affiliate DukeEnergy, has backed out of Phase I of its project, deferring itsrequest for 60 MMcf/d of firm transportation until Nov. 1, 1999. Asa result, Maritimes has requested it be allowed to extend itsin-service date by a year and defer cost-recovery while movingforward on construction of most of the system.

Despite a three-month delay because of technical interfaceproblems, the California Independent System Operator and theCalifornia Power Exchange Corp. (PX) announced they have completeda week’s worth of testing and have notified FERC they’re ready toopen the statewide electricity market on March 31. They intend tocommence operations by accepting bids in the Day Ahead market onMarch 31 with the first full day of operations being the day after.

The Alliance Pipeline project’s in-service date is expected tobe delayed by about one year, Alliance Pipeline President and CEODennis Cornelson announced yesterday. The massive Canadian gaspipeline project designed to bring 2.3 Bcf/d of supply to theChicago hub from supply basins in British Columbia and Albertalikely won’t start flowing gas until late in 2000 rather than inNovember 1999 because of continued regulatory delays in Canada. Theproject has come under a hail of protests from competitors inongoing hearings in front of Canada’s National Energy Board.