Delivered

In an emergency request filed Wednesday, Pacific Gas andElectric (PG&E) delivered a strongly-worded ultimatum to FERC -either revoke the authority for sellers to charge market-basedrates in the out-of-control California bulk power market and takeother actions by “no later than the close of business on Dec. 21,”or it will seek relief from the D.C. Circuit Court of Appeals inWashington. At press time Thursday, the Commission had notresponded to the utility’s demands.

Much like on the East Coast a couple of weeks ago, arecord-setting heat wave set in over the weekend in California andthe desert Southwest. The effect on western peaking power pricesMonday wasn’t nearly as dramatic as the $6,000/MWh numbers hitearlier this month in the New England pool; however, gas pricesshowed a much greater impact this time.

Alarmed by the U.S. appetite for foreign oil, key SenateRepublicans last week introduced a broad-based legislative packagethat would open up areas that have been closed to drilling in thepast, as well as offer tax measures and other incentives tostimulate the production of crude oil, natural gas and alternativeenergy in the Lower 48 states and Alaska.

Effective gas day today, NGPL may be able to schedule limitedamounts of interruptible gas received in the Permian Zone inSegments 7, 8 or 9 and being delivered outside the Permian Zone.

Canada’s Far North was the scene Friday (Sept. 10) of anatural-gas industry version of the small step for man but giantleap for mankind on the moon 30 years ago.

Canada’s Far North was the scene Friday (Sept. 10) of anatural-gas industry version of the small step for man but giantleap for mankind on the moon 30 years ago.

Aquila Energy landed a whopper supply deal yesterday with ComEd.The contract is for up to 625,000 Dth/d of gas to be delivered toChicago. Aquila said it is the largest single natural gas contractthat has ever been arranged in the energy industry and certainlythe largest gas deal Aquila has ever signed. Although terms of theone-year transaction were not released, marketing sources and NGI’spricing staff confirmed the deal is tied to NGI’s Chicago cashindex, one of the most widely used indexes in the industry.

With a stunning drilling success Chevron Canada Resources Ltd.has delivered a sharp reminder to skeptics about the natural gasresources north of the U.S. border.

With a stunning drilling success Chevron Canada Resources Ltd.has delivered a sharp reminder to skeptics about the natural gaspower north of the U.S. border.