Final

Florida PSC Delays Decision on Unbundling

Before handing down a final decision, the Florida Public ServiceCommission decided last week it needed one last look at the detailsof a commission staff proposal that would require the state’s gasutilities to file small customer unbundling tariffs by next March.PSC commissioners requested staff schedule at least one moreworkshop during which it would present the details of the proposedunbundling rule to the commissioners.

September 7, 1999

Rule Issued for Royalty Valuation on Indian Lands

The Interior Department’s Minerals Management Service (MMS) hasissued a final rule for determining royalties for natural gasproduced on Indian lands. Under the new rule, which was publishedin the Aug. 10 Federal Register, Indian leases would have theoption to either compute royalties on wellhead gas using apublished price index, continue using the existing gross-proceedsmethod for arms-length contracts, or use the current MMS benchmarksystem for non-arms-length sales. If gas is processed, Indiantribes then would adopt a “dual accounting” method under whichroyalties would be based on whichever has the greater value for gas- before processing or after processing. In most cases, it’s thelatter.

August 23, 1999

Rule Issued for Royalty Valuation on Indian Lands

The Interior Department’s Minerals Management Service (MMS) hasissued a final rule for determining royalties for natural gasproduced on Indian lands. Under the new rule, which was publishedin Tuesday’s Federal Register, Indian leases would have the optionto either direct producers to compute royalties on wellhead gasusing a published price index, continue using the existinggross-proceeds method for arms-length contracts, or use the currentMMS benchmark system for non-arms-length sales. If gas isprocessed, Indian tribes then could adopt a “dual accounting”method under which royalties would be based on whichever stage hasthe greater value for gas – before processing or after processing.In most cases, it’s the latter.

August 12, 1999

FPL’s Fort Myers Project Gets Green Light

Florida Power & Light Co. (FPL) said Thursday it receivedapproval of its final construction permits to restructure the FortMyers power plant and will begin work at the site immediately.Generation from the $500 million project (called a “repowering”project) will be phased in beginning in early 2001 withcombined-cycle conversion complete by mid-year 2002.

July 23, 1999

Duke Adds Canadian Midstream Assets

Taking its initial plunge into the Canadian Midstream market,Duke Energy announced last week its subsidiary, Duke EnergyServices Canada Ltd., acquired gas gathering and processing assetsfrom Calgary-based Cometra Energy. Financial terms were notdisclosed.

March 1, 1999

Maine Markets Stall, Force Maritimes To Defer Laterals

Unable to complete final agreements with many of its U.S.markets, Maritimes &amp Northeast Pipeline is expected to file anamended certificate application for Phase II of its pipelineproject with FERC this month that will defer construction of nearlyall of its previously planned pipeline laterals in the U.S. It alsois expected to show an increase in rates because of newcalculations of construction costs.

January 25, 1999

NJ’s Energy Deregulation: Two Steps Forward, One Step Back

A battle over the role of municipal utilities in a deregulatedenergy market apparently stands in the way of final approval ofcomprehensive energy deregulation legislation in New Jersey.Tuesday, the state senate approved the bill, S5, containing anenergy deregulation package that would force the state’s gasindustry to allow supply competition statewide starting Dec. 31,and statewide electric generation competition starting August 1.The senate passed the bill by a margin of 28 to seven with threeabstentions and two senators not present. The bill then made itsway to the general assembly where, late Tuesday night, thelegislators amended it and sent it back to the senate.

January 13, 1999

Allegheny, DQE Merger Raises Competition Concerns

FERC last week put off a final ruling on the troubled merger ofAllegheny Energy and DQE Inc., parent of Duquesne Light, until thepartners decide how they want to resolve some serious competitiveconcerns. The Commission gave them the option of divesting DQE’s570-MW Cheswick Generating Station or proceeding to hearing ontheir own mitigation measures, which include relinquishing controlof the Cheswick output on a short-term basis and joining theMidwest independent system operator (ISO).

September 21, 1998

California Continues to Block Gas Restructuring

In the wild final hours of the California state legislature’s1998 session Monday (August 31), another bill aimed at curbing theleeway of the state energy regulators was passed (Senate Bill 1757)and is now awaiting the governor’s signature. A California PublicUtilities Commission representative at the state capitol said theregulators’ remain neutral on the bill, but may take a positionwhen they meet for a regularly scheduled commission conferenceThursday (Sept. 3).

September 2, 1998

Nymex Yields Gains-Before, After Final Bell

The futures market shrugged off another bearish AGA storagereport and quietly traded higher at Nymex Thursday. After testingsupport in the $1.88-89 span early, the September contractrebounded to the mid-$1.90s where it remained in afternoon trade.The prompt month settled at $1.953, up 3.6 cents on the day.

August 21, 1998