Hearings

Responding to comments from last week’s bankruptcy hearings, Pacific Gas and Electric Co. on Wednesday filed second revisions to its disclosure statement and reorganization plan, which are under increased pressure now that California has been allowed to offer its competing plan to the federal bankruptcy court in San Francisco.

The Federal Energy Regulatory Commission issued a formal order last week initiating a fact-finding investigation into possible manipulation of short-term prices for natural gas and electricity in West Coast markets. The agency’s action was sparked by the Enron Corp. financial debacle, Chairman Pat Wood said, and was a follow-up to his pledge before a congressional committee more than two weeks ago (see NGI, Feb. 4).

Canada’s National Energy Board has established a mediation process for the resolution of landowner objections during detailed route hearings for oil and natural gas pipelines and power lines. The board sent out for comment in January 2001 a draft of its proposed Mediation Practice Direction to various landowners, landowner representatives and industry stakeholders across the country. It also sought comments and suggestions for using alternative dispute resolution tools for other types of applications. The board has now reviewed and analyzed comments received and, in light of the overall support indicated by many of the respondents, has decided to implement a voluntary mediation process at the detailed route stage of its proceedings. This will provide an alternative method for landowners and companies to resolve disputes over the detailed routes of pipelines and power lines. The board has revised the draft Mediation Practice Direction and incorporated many of the suggestions made by the participants, and will make the process available, if it is requested. For a copy of the draft Mediation Practice Direction, visit the NEB’s web site at http://www.neb.gc.ca/pubs/pdmdro.pdf .

FERC last Wednesday established evidentiary hearing procedures related to collecting data needed to determine the amount of refunds due to California for electricity overcharges. Among other things, the order concludes that transactions subject to refund are limited to spot transactions through the California Independent System Operator (Cal-ISO) and the state’s power exchange from Oct. 2, 2000 through June 20, 2001. On a related track, the Commission established a separate, preliminary evidentiary proceeding on the issue of refunds in the Pacific Northwest.

After years of debate and hearings on whether and how torestructure the $200 billion electricity industry, mark-up ofcomprehensive legislation by the House Energy and PowerSubcommittee finally is in sight but the chances are slim that atruly bipartisan measure will be voted out in the weeks ahead.

California energy regulators last week identified 10 items forpotential natural gas industry restructuring, most of which dealwith wholesale or large customer operations. State regulators alsoencouraged utilities and large customers to cease their bickeringand come up with a broad-based settlement on gas unbundling.

Acting in concert with a stay issued by the Interior Department’s Office of Hearings and Appeals, the Federal Energy Regulatory Commission has ordered Southern Natural Gas to stop its recently-begun construction work in a wildlife preserve along its mainline expansion route into northern Alabama.

Acting in concert with a stay issued by the InteriorDepartment’s Office of Hearings and Appeals, the Federal EnergyRegulatory Commission has ordered Southern Natural Gas to stop itsrecently-begun construction work in a wildlife preserve along itsmainline expansion route into northern Alabama.

After two years of hearings and oral arguments, FERC yesterdayfinally gave Granite State Gas Transmission the go-ahead to buildits controversial liquefied natural gas (LNG) project in the townof Wells, ME.