Estimates

Reflecting higher wholesale costs for fuel over the past 12 months and estimates of what the future holds, Sierra Pacific Power Co. Monday made its annual mandatory natural gas deferred-energy filing with the Nevada Public Utilities Commission, seeking a 10% boost in retail gas rates, effective Dec. 1. The Sierra Pacific Resources’ Reno-based utility said the filing reflects the “continuing high energy costs around the country.”

Rep. Darrell Issa (R-CA) on Tuesday introduced legislation that would bar federal court review of lawsuits that he estimates could deprive the federal government of billions of dollars in royalties.

Many of the predictions, cost estimates and energy price forecasts in the National Petroleum Council’s (NPC) $30 million study in 2003 on Balancing Natural Gas Policy came up well short of what actually transpired over the last two years, but its policy recommendations remain right on the money, according to many presenters at the Department of Energy’s (DOE) roundtable on Balancing Natural Gas Supply and Demand Tuesday in Washington, DC.

Dominion reported operating earnings of $1.08/share in the third quarter which fell short of earnings guidance of $1.20-1.25/share, missed Wall Street estimates of $1.18/share and were about 13 cents/share lower than operating earnings in the third quarter of 2004, mainly because of the significant impact that Hurricanes Katrina and Rita had on production, operations and natural gas prices. Nevertheless, Dominion shares fell only slightly because the company sees no long-term impact from the hurricanes.

Pacific Gas & Electric did not extend a high-inventory OFO beyond Saturday.

In a new long-range forecast, Puget Sound Energy (PSE) estimates that it will need an additional 2,000 MW of power generation by 2025 due to population and business growth in its service territory as well as expiring purchased-power contracts with other Northwest utilities and power producers.

Florida Gas Transmission did not extend an Overage Alert Day notice beyond Wednesday.

ChevronTexaco Corp. estimates in a fourth quarter interim report that last September’s Hurricane Ivan resulted in a net loss in production of 10%, including an 11% decline in U.S. natural gas output and a 9% loss in natural gas liquids, compared with 3Q2004 numbers. The Gulf of Mexico storm resulted in net loss of 79,000 boe/d over 3Q numbers.

Reflecting estimates for higher than estimated wholesale natural gas costs, the Nevada Public Utilities Commission Wednesday approved a 9.2% retail rate hike for Las Vegas-based Southwest Gas Corp., and the utility immediately issued an announcement warning customers they face higher heating bills this winter. Southwest Gas had asked for a 5% hike, but the regulatory commission on further estimating wholesale prices bumped it up to $30 million.