Finalized

FERC last Thursday finalized landmark new rules on the certification of an electric reliability organization (ERO) and the procedures for the establishment, approval and enforcement of mandatory electric reliability standards. But Commissioners, at a special open meeting, underscored the point that their work is far from over, with consideration of an ERO application waiting in the wings. Over the long haul, FERC will work to ensure that reliability standards are effectively enforced.

FERC late Thursday said it finalized rules to implement the Congressionally-mandated repeal of the Public Utility Holding Company Act (PUHCA) of 1935 and enactment of the Public Utility Holding Company Act of 2005, or PUHCA 2005.

Denver-based PRB Gas Transportation, Inc. and Calgary-based Enterra Energy Trust said Wednesday that they have finalized the definitive agreement to develop coal bed methane properties in an area of mutual interest in Wyoming and Montana. As reported in July (see Daily GPI, July 13), PRB will have the right to earn up to a 50% working interest in certain properties of Enterra’s recently acquired subsidiary, Rocky Mountain Gas (RMG).

House and Senate tax writers have finalized $14.5 billion of energy tax incentives over 10 years to be included in the sweeping energy bill that lawmakers are expected to vote on this week before they leave for their August recess. The House is poised to take up the measure (HR 6) Thursday, with the Senate to follow on Friday.

Mitsubishi Corp. and ConocoPhillips announced Tuesday they have finalized their agreement to jointly develop a $400 million LNG receiving terminal with 700 MMcf/d of sendout capacity and a peak capacity of up to 1 Bcf/d proposed for the Port of Long Beach, CA. The companies had signaled their intent to form a joint venture last July (see Daily GPI, July 14, 2004).

FERC last Wednesday finalized new rules to standardize market-based rate sellers’ reporting requirement for changes in status and provide guidance as to the events that would trigger this reporting requirement. The Commission unveiled the final rule at its regular open meeting [RM04-14].

The transaction is valued at $2.3 billion. Ameren assumed about $1.8 billion in IP debt and preferred stock, placed $100 million in a six-year escrow account for contingent environmental liabilities, and it paid the balance in cash to Dynegy.

ConocoPhillips last week finalized a transaction with Freeport LNG Development LP to acquire 1 Bcf/d of regasification capacity at its proposed liquefied natural gas (LNG) receiving terminal set to be built in Quintana, TX, obtained a 50% interest in the general partner managing the venture, and it said it would provide “substantial” construction funding.

ConocoPhillips on Tuesday finalized a transaction with Freeport LNG Development LP to acquire 1 Bcf/d of regasification capacity at its proposed liquefied natural gas (LNG) receiving terminal set to be built in Quintana, TX, obtained a 50% interest in the general partner managing the venture, and it said it would provide “substantial” construction funding.