Found

In a decision siding with Sempra Energy, FERC Administrative LawJudge (ALJ) Herbert Grossman has found that postage-stamp rates onKern River Gas Transmission are “unjust and unreasonable.” Instead,he ruled in favor of a distance-sensitive zonal rate design, whichwas proposed by Sempra.

As if any more fallout from California’s electricity crisiscould be found, a Colorado-based survey/consulting firm Tuesdayreleased summaries of a national client-supported study thatindicates large energy-using businesses are going to be willing topay more to prevent being shut down from electricity outages; andthe costs of those outages is skyrocketing.

Californians looking for reason to celebrate over theThanksgiving holiday may have found it in a new report from theCalifornia Energy Commission, which claims that the state shouldhave enough power to meet its electricity demand next summer,barring extraordinarily hot weather.

Based on the results of its much-anticipated investigation, FERCyesterday found that the market rules and structure for wholesalesales of electricity in California are “seriously flawed,” and thatthey — along with the imbalance in supply and demand — havecaused and will continue to cause “unjust and unreasonable” ratesfor short-term services in markets operated by the CaliforniaIndependent System Operator (Cal-ISO) and California Power Exchange(Cal-PX).

Cash traders found it impossible to ignore that there wasvirtually no weather-related load left for the weekend, andprobably felt that Wednesday’s and Thursday’s price reactions tostorage news and to a super-surge in energy futures related toMiddle East violence had been at least a little overhyped. Thusthey sent prices lower by double digits Friday at virtually everypoint.

Independent Energy Holdings PLC, an electric generating andelectric marketing company, has found itself the target of afederal class action lawsuit for stock fraud brought by thecompany’s shareholders, according to law firm Berman DeValerio& Pease LLP.

Independent Energy Holdings PLC, an electric generating andelectric marketing company, has found itself the target of afederal class action lawsuit for stock fraud brought by thecompany’s shareholders, according to law firm Berman DeValerio& Pease LLP.

BP yesterday said it has found the largest gas field to dateoffshore Trinidad and Tobago, which has become a major source ofliquefied natural gas for the U.S. market. BP’s initial well on theRed Mango field, located 35 miles east of Galeota Point, indicated3 Tcf of gas reserves and about 90 million bbl of condensate. It’sBP’s second major gas find in the area this year. The company saidit would shortly begin appraisal work to define the exact size ofthe find.

Those of a bullish bent found encouragement all around Tuesday:July natural gas futures challenged unprecedented heights whilecrude oil futures edged back above $32/bbl; heat waves challengedelectric grid operators in both the East and West; and priorestimates of this afternoon’s storage report indicated a consensusthat the year-on-year deficit will just keep growing and adding tothe refill challenge.