As the Pacific Northwest’s dominant energy player, the federal Bonneville Power Administration (BPA) has adopted what it described as a landmark settlement on a residential exchange program that it hopes will end years of dispute over how BPA makes low-cost hydroelectric supplies available to small residential and farm customers of investor-owned utilities (IOU). Given the criticism of BPA for shunning natural gas and wind power generators in the face of abundant water supplies this spring and summer, the federal power behemoth is hoping it has a win-win, noting that the deal has the backing of six regional IOUs, three state regulatory commissions, and most public-sector utilities representing 88% of BPA’s customers and 93% of the power consumed in the region. Under the settlement, IOU customers are in line to get about $3.3 billion in payments during a 17-year period, beginning at $182.1 million in fiscal 2012 and increasing to $286.1 million by fiscal 2028.
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Technicians in Charge; Market Decline Seen as August Trades Flat
August natural gas was unchanged Monday in trading largely described as technical with little impact from forecasts continuing to call for oppressive heat throughout major energy markets. At the close August had settled flat at $4.546 and September was up 0.4 cent to $4.524. August crude oil fell $1.31 to $95.93/bbl.
Ethics Group Blasts Times Over Shale Coverage
A self-described national ethics organization has asked the New York Times’ public editor, who essentially serves as the newspaper’s ombudsman, to investigate its controversial front-page series deriding the shale gas industry.
Times Shale Coverage Taken to Task by Ethics Group
A self-described national ethics organization has asked the New York Times’ public editor, who essentially serves as the newspaper’s ombudsman, to investigate its controversial front-page series deriding the shale gas industry.
Storage Has Returned to Operational Roots, Says Developer
Natural gas storage — which during the energy marketer heyday was frequently described as an asset to be optimized — has come full circle, back to its pre-New York Mercantile Exchange roots, a storage development executive told NGI.
Developer Touts Operational Value of Storage
Natural gas storage — which during the energy marketer heyday was frequently described as an asset to be optimized — has come full circle, back to its pre-New York Mercantile Exchange roots, a storage development executive told NGI.
GasMart 2011: Contrarian Sees Rising Gas Prices This Year
In what he described as “a contrarian view to what we’re hearing in the marketplace,” Paul Corby, senior vice president of Planalytics Inc., said he thinks natural gas prices could be close to $5.50/MMBtu later this year and possibly as high as $6.50/MMBtu in 2012.
GasMart 2011: Contrarian Sees Rising Gas Prices This Year
In what he described as “a contrarian view to what we’re hearing in the marketplace,” Paul Corby, senior vice president of Planalytics Inc., said Wednesday he thinks natural gas prices could be close to $5.50/MMBtu later this year and possibly as high as $6.50/MMBtu in 2012.
Dangerous to Stay Unhedged, Analyst Says; May Falters
May natural gas futures were limited to a narrow 6-cent trading range and fell nominally as risk managers noted an uninspired market, and described their methodology for wringing value from a low-volatility trading environment. At the close May had eased 2.3 cents to $4.389 and June shed 1.4 cents to $4.452. June crude oil lost a penny to $112.28/bbl.
Spread Trading Opportunities Seen; February Gains
February natural gas futures closed higher in a session described as “book-squaring” with traders focused on spread trading with little in the way of any fundamental developments. At the close February posted an advance of 4.1 cents to $4.736 and March added 5.1 cents to $4.743. March crude oil fell 48 cents to $89.11/bbl.