Designed

Speaking prior to the launch of numerous state legislativeproposals yesterday designed to solve California’s power crisis,FERC Chairman Curt Hebert expressed disappointment with the speedand direction the state has taken so far in attempting to manageits predicament.

A more comprehensive legislative proposal emerged in CaliforniaMonday designed to stabilize power prices and save the state’s twoprincipal investor-owned utilities from bankruptcy. But it camewith what would be a high price for deregulation advocates, namelythe state taking over the utilities’ hydroelectric generation andtransmission assets. In Washington DC, a Senate bill was introducedthat would give the Department of Energy (DOE) the power to setregional price caps on bulk power transactions in western states.

FERC upheld its March decision on remand in which it disclaimedjurisdiction over a four-mile, six-inch line of KN WattenbergTransmission LLC that serves two industrial customers in FortMorgan, CO. The Commission asserted jurisdiction over the lateralin a November 1997 ruling, but the U.S. Court of Appeals for theTenth Circuit remanded the decision two years later. Last March,FERC vacated its controversial decision upon acknowledging that theline met the qualifications for a Hinshaw exemption and, therefore,was subject to regulation by the Colorado Public UtilitiesCommission.

Aquila Energy has won a five-year weather hedge contract toserve the Sacramento Municipal Utility District, a move designed toprotect the California utility from the combined effects of lowprecipitation and the wide swings in electricity prices now facedby other communities in the state.

Capping a two-year battle for its controversial MarketLink project, designed to expand its system to deliver new supplies to the Northeast, Williams’ Transco pipeline has scaled back its ambitious schedule, filing to phase in construction through 2004.

The C$4.6 billion Alliance natural gas and liquids pipeline, designed to transport 1.325 Bcf/d from northeast British Columbia to Chicago, has completed its construction phase and now is commissioning the mainline, laterals, compressors and supervisory equipment.

The C$4.6 billion Alliance natural gas and liquids pipeline,designed to transport 1.325 Bcf/d from northeast British Columbiato Chicago, has completed its construction phase and now iscommissioning the main line, laterals, compressors and supervisoryequipment.

The Midwest Energy Hub, a previously announced joint partnershipbetween Peoples Energy and Enron North America designed to expandPeoples’ existing market hub, is now up and running. Despite stillwaiting for approval from the Illinois Commerce Commission (ICC),the new company began offering services to Chicago-area customerslast week. The original agreement between the two companies wasforged last October (see NGI, Oct. 10).

The Midwest Energy Hub, a previously announced joint partnershipbetween Peoples Energy and Enron North America designed to expandPeoples’ existing market hub, is now up and running. Despite stillwaiting for approval from the Illinois Commerce Commission (ICC), thenew company began offering services to Chicago-area customers earlierthis week. The original agreement between the two companies was forgedlast October (see Daily GPI, Oct. 5).