Diego

The California Public Utilities Commission last week unanimously approved a settlement agreement for San Diego Gas and Electric Co. regarding almost $600 million of unpaid wholesale power costs it has accumulated since mid-1999 through Feb. 7, 2001 when the state began buying wholesale electricity.

California inked three new power contracts last week at the same time a San Diego state Superior Court was ordering the state to make the full contents of the contracts public. In another arena, the state discontinued talks with AES over 450 MWs of supply it will bring on line in August with the re-powering of two units at its Huntington Beach generating plant.

California announced last week it inked three new power contracts at the same time a San Diego state Superior Court was ordering the state to make the full contents of the contracts public. In another arena, the state discontinued talks with AES over 450 MWs of supply it will bring on line in August with the re-powering of two units at its Huntington Beach, CA, generating plant.

Throwing its hat in the ring with a number of U.S. energy giants such as El Paso Corp. and Chevron, San Diego-based Sempra Energy is pursuing a proposal for an on- or offshore liquefied natural gas (LNG) receiving terminal along the Pacific coast of northern Baja somewhere in a 70-mile strip south of the U.S. border. The proposed project would be financed by a consortium that would include Mexican interests, as well as Sempra. A formal announcement about the project is expected to come later in the month, according to Sempra officials.

Record demand of 659 MMcf/d last week on San Diego Gas &Electric’s system forced the utility to curtail about 120 MMcf/d ofdeliveries to six interruptible customers, including two powergenerators and four commercial and industrial customers in SouthernCalifornia, SDG&E spokesman Art Larson said. Demand on thesystem Thursday would have exceeded SDG&E’s capacity withoutthe curtailments.

Record demand of 659 MMcf/d earlier this week on San Diego Gas& Electric’s system forced the utility to curtail about 120MMcf/d of deliveries to six interruptible customers, including twopower generators and four commercial and industrial customers inSouthern California, a spokesman said yesterday. Demand on thesystem yesterday would have exceeded SDG&E’s capacity withoutthe curtailments, said SDG&E spokesman Art Larson.

It could be quite some time before FERC responds to San DiegoGas and Electric’s (SDG&E) emergency request seekingreinstatement of price caps on short-term capacity releases for gastransportation service to the California market.

Regardless of who wins this week’s presidential election, SanDiego-based Sempra Energy advocates an expanded national energypolicy and development of sufficient pipeline upgrades to ensurethat the nation’s gas infrastructure can support all of the newnatural gas-fired electric generating plants that are underconstruction or in development throughout the nation.

Unlike San Diego consumers for whom skyrocketing utility billscame as a hugely unpleasant surprise, natural gas customers inIndiana have been warned in advance to expect to expect much higherbills this winter. The message to Indiana consumers last week wassimilar to those being broadcast all across the country bygovernment and utility officials anxious to moderate the intensepublic reaction manifest in California.