Face

Although stability has returned to California’s electricity markets, those markets face many remaining challenges that, if not handled correctly, could easily throw the state and the broader interconnected Western grid into renewed chaos, the California Independent System Operator (Cal-ISO) recently told FERC.

The struggle experienced by some electronic trading systems in the face of stiff competition from IntercontinentalExchange, EnronOnline, TradeSpark and other systems isn’t stopping E-lecTrade from launching its own power trading system this summer. The system is unique, however, in its effort to provide multiple structured power transaction types and risk management services real time and on an anonymous basis.

The Department of Transportation (DOT) yesterday announced it is seeking a fine of $2.52 million against El Paso Natural Gas for several “probable violations” that potentially contributed to the fatal explosion on its pipeline system in New Mexico last August. Although the agency called it the “largest civil penalty” ever sought against a pipeline operator for safety violations, it seemed rather conservative in light of the death toll of 12.

Yielding to pressure from all sides, FERC last week did a complete about-face and set for hearing the allegations that El Paso Natural Gas rigged the bidding process for a large block of transportation capacity on its system to favor its merchant-power generation facilities. The decision was a major win for California parties and a disappointing setback for El Paso pipeline and its affiliates.

With summer 2001 only a week away, all eyes are turning toward California to see how the embattled state handles itself through the three-month period when air conditioning usage reaches its peak and MW supply becomes scarce. With the California Energy Commission (CEC) and the California Independent System Operator (Cal-ISO) already on record expecting rotating power outages during peak afternoon demand hours in the state, the key issue is how will the outages impact petroleum product and natural gas supply in the state.

With summer 2001 only a week away, all eyes are turning toward California to see how the embattled state handles itself through the three-month period when air conditioning usage reaches its peak and MW supply becomes scarce. With the California Energy Commission (CEC) and the California Independent System Operator (Cal-ISO) already on record expecting rotating power outages during peak afternoon demand hours in the state, the a key issue is how will the outages impact petroleum product and natural gas supply in the state.

FERC yesterday did a complete about-face and set for hearing the allegations that El Paso Natural Gas rigged the bidding process for transportation capacity on its system to favor its merchant-power generation facilities. The decision was a major win for California parties and a disappointing setback for El Paso pipeline and its affiliates.

Western energy markets will face an even tougher summer this year than last, Cambridge Energy Research Associates (CERA) said in a Monthly Briefing issued last week. Gas and power prices will be even higher on average and energy conservation efforts won’t be enough to prevent blackouts, it predicted.

Western energy markets will face an even tougher summer this year than last, Cambridge Energy Research Associates (CERA) said in a Monthly Briefing issued last week. Gas and power prices will be even higher on average and energy conservation efforts won’t be enough to prevent blackouts, it predicted.