The effects of the western power crisis will prevail throughthis year and beyond — with the possibility of much more severeproblems and concurrent economic consequences this summer than havebeen seen so far — according to a western energy summit Friday,which included western state governors, top federal energyofficials, and the CEOs of energy producers and industrialconsumers.
Effects
Articles from Effects
Energy Efficiency, Producer Tax Credits Key to Low Gas Bills
Congress already has two measures pending that would help tomoderate the effects of the high natural gas bills expected thiswinter for consumers – the Clinton administration’s package ofenergy efficiency measures and short-term tax incentives forproducers, Energy Secretary Bill Richardson said last week.
Hoecker Offers Ways to Dampen Price Volatility
To “ameliorate” the effects of natural gas price volatility thiswinter, FERC Chairman James J. Hoecker yesterday called on LDCs toaccent hedging techniques and long-term contracts, state regulatorsto make greater use of rate design and stabilization tools andclosely oversee LDC purchasing practices, and both federal andstate governments to support energy assistance and weatherizationprograms to aid low-income customers.
Independence Upheld; Transco, ANR Projects Advance
FERC had a very busy day yesterday on the natural gas side.First, it upheld its July order in which it awarded a certificateto the Midwest-to-East Coast Independence Pipeline, fending offcontinuing questions about the binding nature of the project’sprecedent agreements and its market need. Federal regulators alsogave the go-ahead for Phase II of ANR Pipeline’s Wisconsinexpansion, a Reliant Energy Gas Transmission expansion in Arkansas,and awarded a preliminary determination to Transcontinental GasPipe Line for its proposed Sundance expansion in the Southeast.
Deregulation Still Hitting AGL Hard
The effects of deregulation are still being felt by AGLResources, the parent of the now-totally unbundled Atlanta GasLight, as 151 employees, or 7% of the workforce, has been cut sinceAugust, the company said recently. No more layoffs are expected,although the company did say it is always looking for ways toimprove efficiency.
Independents Dominate Lackluster Lease Sale
If the results of last week’s Gulf of Mexico lease sale are any indication, the federal government is now feeling the effects of weak commodity prices and industry consolidation.
FERC Tries to Wean AGL Off of Waivers
Fearing the potential side effects of waivers on the interstatemarket, FERC last week decided to give Atlanta Gas Light (AGL) onlya short-term extension of its waivers to Commission regulations topreserve the “status quo” of retail gas unbundling in Georgia whileit explores other non-waiver solutions for utilities.
Snow Has Differing Price Effects in Northeast, Rockies
Flatness again dominated Tuesday in the majority of cashmarkets. However, Northeast citygates dropped by about a nickeldespite heavy, wet snow or cold windswept rain in the region thatone weather forecast service expected to persist overnight.