Finding

Finding that reliability standards are not being met during certain conditions and that the long-term reliability of the regional power grid in the Washington, D.C., area is compromised, FERC last Monday evening said that it has directed PJM Interconnection and Potomac Electric Power Co. (Pepco) to develop and implement a comprehensive plan to preserve reliability in the region.

As natural gas prices continue to maintain their lofty levels, industries that use the commodity as a feedstock are finding it increasingly more difficult to conduct business as usual. As one of the largest energy users in Ohio, steel producers in the state said Thursday that they have grave concerns over natural gas prices, which have increased 400% in five years. In the most recent price run-up, the steel companies say that natural gas costs per ton of steel produced have tripled.

The New York Mercantile Exchange (Nymex) said Friday it has determined to make a finding of force majeure with respect to all remaining delivery obligations in the September natural gas futures contract effective as of Thursday’s declaration by Sabine Pipeline. The exchange said any further action will be undertaken pursuant to its authority as set forth in NYMEX rule 220.18, in particular rule 220.18 section (C)(6).

Finding a proven, economical way to move natural gas onshore from far out in the North Atlantic has long been a puzzle for the Canadian oil and gas industry, but Husky Energy Inc. may be close to finalizing an agreement to use compressed natural gas (CNG) tankers to transport gas reserves from its White Rose oil prospect, an executive told a Calgary audience last week.

Denver-based independent Bill Barrett Corp., which has pinned its future on finding oil and natural gas in the Rockies, on Thursday reported that production in the second quarter was 8.6 Bcfe, up from 8.1 Bcfe for the same period a year ago. However, the company reported a net loss of $15.9 million, compared with net income of $3 million in 2Q2004 after taking a noncash impairment on some of its Wind River Basin properties.

FERC last Wednesday agreed with an administrative law judge’s (ALJ) February 2004 finding that the allocation of production costs among the Entergy System operating companies is no longer just and reasonable, and requires the use of a bandwdith remedy to bring the costs into alignment.

KeySpan LNG LP, in comments filed at FERC last week, said it took “strong exception” to staff’s finding that the proposed conversion of the company’s existing liquefied natural gas (LNG) storage terminal in Providence, RI, to an import terminal did not meet federal safety standards. Commission staff reached this conclusion in a final environmental impact statement (FEIS) on the project that was issued last month.

KeySpan LNG LP, in comments filed at FERC Wednesday, said it took “strong exception” to staff’s finding that the proposed conversion of the company’s existing liquefied natural gas (LNG) storage terminal in Providence, RI, to an import terminal did not meet federal safety standards. Commission staff reached this conclusion in a final environmental impact statement (FEIS) on the project, which was issued last month.

The cash market was still finding enough power generation load — prompted by a combination of warm temperatures and a spate of nuclear plant outages, both intentional and unscheduled — to eke out further generally small price gains at a majority of points Wednesday. But El Paso-San Juan quotes actually fell by 2-3 cents and several other points, nearly all of them in the West, were flat to barely higher. Gains ran as big as about 20 cents.