Divided

State attorneys general and utility regulatory commissions remain divided in their reactions to FERC’s sweeping proposal to implement a standard market design (SMD) for U.S. wholesale electricity markets.

Republican and Democratic senators Tuesday drew lines in the sand over key amendments to strike a federal mandate for renewable energy from the omnibus energy bill (S. 517), and to regulate trading of over-the-counter (OTC) energy derivatives.

California’s sharply divided energy regulators last Thursday suspended direct access to retail electric customers in the state and okayed one other major rate change necessary to begin the process of selling $13 billion in state electricity revenue bonds. The actions were effective immediately and allow existing direct access customers to continue their current arrangements.

Referring to herself as both a “conservationist and aconservative,” Interior Secretary nominee Gale Norton walked a finetightrope yesterday in an effort to persuade her Senate Republicanand Democratic inquisitors that, despite the controversysurrounding her nomination, she is the best choice for the job.

As sources had predicted (see Daily GPI, July 14), the weekendmarket was divided along geographical lines. Eastern quotes were upby around a nickel to a little more than a dime in most cases,while the majority of western points registered declines rangingfrom slightly less than a dime to 20 cents or more.

The weekend market was divided along geographical lines Friday.Price increases tended to range from about a nickel to a littlemore than a dime at eastern points, but high-linepack OFOs by themajor California distributors (see Tranportation Notes) served tokeep western numbers flat to down more than 30 cents at thePG&E citygate.

Tossing aside its “tortuous” modified primary function methodfor deciding the jurisdiction of offshore pipelines, FERC last weekissued a long-awaited final rule that’s designed to bring”symmetry” to the regulation of natural gas pipelines on the OuterContinental Shelf (OCS) by imposing similar reporting burdens onall facilities.

Tossing aside its “tortuous” modified primary function methodfor deciding the jurisdiction of offshore pipelines, FERC yesterdayissued a long-awaited final rule that’s designed to bring”symmetry” to the regulation of natural gas pipelines on the OuterContinental Shelf (OCS) by imposing similar reporting burdens onall facilities.

A very divided FERC last week dealt a potentially crippling blowto the controversial Independence Pipeline and associatedSupplyLink and MarketLink expansion projects, requiring them toshow documented proof of binding, long-term contracts for more thantwo-thirds of their project’s firm capacity before they can beginconstruction, as well as to satisfy more than 100 environmentalconditions. The Commission dismissed a major affiliate contract,casting doubt on the market support for the eastward-boundIndependence and SupplyLink projects.