Dispute

Transwestern Pipeline is disputing California regulators’ claims that an index-based rate contract negotiated with Dynegy Marketing and Trade violates a FERC order barring the Enron-affiliated pipeline from doing such deals for a one-year period.

Transwestern Pipeline is disputing California regulators’ claims that an index-based rate contract negotiated with Dynegy Marketing and Trade violates a FERC order barring the Enron-affiliated pipeline from doing such deals for a one-year period.

The global, multi-billion-dollar deal announced by California and Williams last week that could ultimately include two other states and more than a dozen local governments, along with a series of class action plaintiffs, calls for California to gain more control of its long-term power contracts and receive up to $417 million in separate payments from the energy company.

The National Energy Board is seeking feedback from interested parties on a discussion paper outlining its proposed Appropriate Dispute Resolution (ADR) program. The document describes options for settling disputes as an addition to the board’s traditional regulatory process. The board is welcoming the public’s input, comments and questions on all aspects of the design of the program and the contents of the ADR document. Comments received by Nov. 5 will assist in developing program guidelines. The ADR discussion paper are available on the board’s web site at www.neb-one.gc.ca under “What’s New.”

FERC last Wednesday set for hearing a number of complaints filed by PacifiCorp against four energy sellers, claiming the prices set in short-term bilateral contracts for delivery of energy between July 1 and Sept. 30 of this year are unjust and unreasonable.

Ending a long-running dispute between Florida’s state government and petroleum companies with production interests offshore Florida, President Bush last week announced that the U.S. government will buy back most of the oil and natural gas leases in the Destin Dome area offshore Pensacola, FL, as well as drilling rights in the Florida Everglades ecosystem. While the agreements will preserve some of Florida’s most significant natural treasures, major gas producers said the decision to remove these areas from exploration and development will be a “major hit to natural gas supply” for the country.

Putting to rest the capacity release contract dispute raised by Tenaska Marketing Ventures against Northern Border Pipeline Co. in the wake of Enron Corp.’s bankruptcy, FERC ruled last Wednesday in favor of Northern Border, denying Tenaska’s complaint against the pipeline.

FERC last Wednesday set for hearing a series of complaints filed by power companies in Nevada, California, and Washington state asking the commission to modify contracts entered into with generators in late 2000 and early 2001. The complaints assert that prices for long-term wholesale power in the contracts were the result of dysfunctional western markets and should be modified to reduce the prices of the contracts to current market levels.

The refusal of the Democrat-controlled Senate Judiciary Committee to approve the nomination of Judge Charles Pickering to the federal bench is expected to tie up nominations in the upper chamber for the foreseeable future, including the nomination of Joseph T. Kelliher to fill the vacancy on the Federal Energy Regulatory Commission.