Eliminate

Over opposition from Ohio Consumers’ Counsel (OCC), the Public Utilities Commission of Ohio (PUCO) on Friday approved a plan by Dominion East Ohio to eliminate gas-cost-recovery rates in favor of a pricing plan that sets rates based on a more market-based methodology. The OCC said the outcome would “not ensure customer savings.”

As part of his larger 2004-05 fiscal year budget, California Gov. Arnold Schwarzenegger Friday proposed a significant downsizing of the state government bureaucracy overseeing the energy industry and further renegotiation of the state’s long-term power contracts with suppliers.

The Federal Energy Regulatory Commission’s “rules of the road,” designed to maintain market integrity and eliminate manipulation (Order 644), instead will put a wrench in the works of efficient market operations, a number of market participants said in asking the Commission for further clarifications.

Although it “anticipates” a successful renewal and restructuring of maturing credit facilities, Fitch Ratings has lowered the debt ratings on Dynegy Inc. and Dynegy Holdings Inc. to “CCC+” from “B” and also has lowered the long-term ratings of affiliates Illinois Power and Illinova Corp. All of the ratings for the corporation and its affiliates remain on Rating Watch Negative.

Although it “anticipates” a successful renewal and restructuring of maturing credit facilities, Fitch Ratings has lowered the debt ratings on Dynegy Inc. and Dynegy Holdings Inc. to “CCC+” from “B” and also has lowered the long-term ratings of affiliates Illinois Power and Illinova Corp. All of the ratings for the corporation and its affiliates remain on Rating Watch Negative.

Ongoing efforts in the West to eliminate seams between various power markets shouldn’t delay the formation of regional transmission organizations (RTOs) in that part of the country, officials with various electric grid operators reassured FERC Commissioners last Wednesday.

President Bush’s proposal to eliminate dividend taxation for investors as part of his sweeping economic stimulus package unveiled last Tuesday is expected to have significant benefits for the energy industry, notably natural gas and electric utilities, said energy analysts and industry groups.

President Bush’s proposal to eliminate dividend taxation for investors as part of his sweeping economic stimulus package unveiled Tuesday is expected to have significant benefits for the energy industry, notably natural gas and electric utilities, said analysts and industry groups.

Conceding defeat to the courts, the Federal Energy Regulatory Commission voted Wednesday to eliminate the contract term limit for incumbent pipeline shippers who exercise their rights of first refusal (ROFR) to retain transportation capacity under contracts that are due to expire shortly. The decision was a blow to existing pipeline shippers, who believed FERC’s requirement of a five-year term cap under ROFR thwarted potential abuses.