Implement

Seven states in the Northeast agreed to implement a cap-and-trade program to lower carbon dioxide (CO2) emissions from power plants. Forward movement on the regional greenhouse gas initiative (RGGI) came after Massachusetts Gov. Mitt Romney pulled his state out of the effort and the chief executive of Rhode Island decided not to sign on to the effort at this time. RGGI is the first mandatory cap-and-trade program for CO2 emissions in U.S. history.

In separate filings submitted to FERC, Duke Power and MidAmerican Energy proposed to implement independent grid coordinator plans. For its part, Duke Power wants the Midwest Independent Transmission System Operator (MISO) to serve as its independent transmission coordinator, while MidAmerican plans to contract with a yet-to-be-determined independent transmission service coordinator (TSC).

Due to forecasts of cold weather in its service area, MRT will implement a System Protection Warning at the start of Wednesday’s gas day. See the bulletin board for SPW conditions.

CIG had hoped that announcing plans late last week to implement a Strained Operating Condition (SOC) notice Tuesday (see Daily GPI, Nov. 16) would enhance its anticipated limited ability to handle imbalances caused by variations between scheduled receipts/deliveries and actual gas flow, as well as any related excess injections into storage. But, the pipeline said late Monday afternoon, “Since that posting, CIG’s storage injection situation has not improved and inventory levels continue to approach operational limits.” Thus it will change the SOC notice to a full-fledged OFO effective with the start of Wednesday’s gas day until further notice. Under the OFO, “shippers should anticipate that CIG will require all transportation transactions to be in balance between receipts and deliveries, and all shippers should maintain close contact with their suppliers and markets.” Shippers also were asked to ensure that CIG has up-to-date contact names and phone numbers for their accounts. See the bulletin board for further details.

CIG had hoped that announcing plans late last week to implement a Strained Operating Condition (SOC) notice Tuesday (see Daily GPI, Nov. 16) would enhance its anticipated limited ability to handle imbalances caused by variations between scheduled receipts/deliveries and actual gas flow, as well as any related excess injections into storage. But, the pipeline said late Monday afternoon, “Since that posting, CIG’s storage injection situation has not improved and inventory levels continue to approach operational limits.” Thus it will change the SOC notice to a full-fledged OFO effective with the start of Wednesday’s gas day until further notice. Under the OFO, “shippers should anticipate that CIG will require all transportation transactions to be in balance between receipts and deliveries, and all shippers should maintain close contact with their suppliers and markets.” Shippers also were asked to ensure that CIG has up-to-date contact names and phone numbers for their accounts. See the bulletin board for further details.

Members of the North American Energy Standards Board (NAESB) have ratified standards to implement FERC Order 2004 which significantly broadened the scope of energy affiliates that will be subject to the agency’s standards of conduct governing the relationships between regulated natural gas pipeline/electric transmission providers and their affiliates (see Daily GPI, Nov. 26, 2003 and April 15, 2004). The rule, set to go into effect Sept. 1, significantly expanded the current Order 497 regulations governing regulated pipeline and power transmission providers and preferential treatment, information disclosure and employee sharing with their marketing and wholesale merchant affiliates. The expanded rules apply to traders, producers, gatherers, processors, intrastate and Hinshaw pipelines, and any affiliate making a sale for resale of natural gas or electric energy in interstate commerce. The new standards set out by NAESB include a package of modifications of existing definitions and standards, the deletion of several principles and definitions, the creation of a new principle and the modification of one interpretation. NAESB members approved the standards in balloting that closed June 25.

Stating that it was “inappropriate at this time to implement procedures that would unduly interfere with the normal operation of the natural gas market,” the National Energy Board (NEB) said late last week that it has denied the Province of New Brunswick’s application that would have put local interests first in line for offshore Nova Scotia supplies, potentially jeopardizing millions of dollars in investments for supply development and transportation. While it found no evidence of companies favoring U.S. export markets and discriminating against Canadian buyers, the NEB said it would organize a monitoring team and gather price and supply data.

Stating that it was “inappropriate at this time to implement procedures that would unduly interfere with the normal operation of the natural gas market,” the National Energy Board (NEB) said Thursday that it has denied the Province of New Brunswick’s application that would have put local interests first in line for offshore Nova Scotia supplies, potentially jeopardizing millions of dollars in investments for supply development and transportation. While it found no evidence of companies favoring U.S. export markets and discriminating against Canadian buyers, the NEB said it would organize a monitoring team and gather price and supply data.

FERC last week conditionally approved a proposal by the New York Independent System Operator (NYISO) to implement an installed capacity (ICAP) demand curve in the grid operator’s ICAP market. The Commission said the proposal will provide better price signals to investors for the construction of new generation and encourage the formation of long-term, bilateral transactions, among other things.