California consumers, regulators and utilities have expanded their complaints against sky-high power prices to include natural gas prices, leveling accusations against El Paso Natural Gas and demanding federal intervention in the 15-year old competitive natural gas market.
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Two basis swap contracts based on NGI’s bidweek indexes atChicago and the Southern California border were among a number ofenergy products approved last week for listing on enymex, the NewYork Mercantile Exchange’s Internet-based trading system. Nymexexpects to launch the new system during the second quarter of 2001.
Williams has been selected in a “landmark transaction” toinstall the infrastructure, including gathering lines and onshoreprocessing, to service new deep water development in the Nansen andBoombang Fields in the East Breaks area of the Gulf of Mexico.
By the end of last week with rising temperatures, peak demandand political heat, San Diego Gas and Electric Co. and theCalifornia Power Exchange (Cal-PX) worked out a proposal for theutility to purchase fixed price electricity through forward marketsalready in place at the Cal-PX over a longer term five- tonine-month period into next spring. SDG&E has asked stateregulators to okay the purchases at their Aug. 3 meeting.
The U.S. Senate amended the Department of the Interior’sappropriations bill to include a provision for a two million barrelheating oil reserve in the Northeast. The House already hasauthorized creation of a permanent reserve but has not appropriatedfunds. A conference committee now will merge the two measures. Lastweek, the president ordered the Department of Energy to establish atemporary home heating oil reserve in time for use this winter.This week, DOE plans to advertise for bids to fill that stockpile.It intends to sell oil from the Strategic Petroleum Reserve inLouisiana in exchange for heating oil and storage capacity in theNortheast.
Kansas-based Western Resources is exploring “several strategic alternatives” for its electric utility operations, which include finding a merger partner as it attempts to separate its regulated and unregulated assets and strengthen its market position. If a merger partner can’t be found, Western plans to look at other options for its two electric utilities, KPL and KGE. It may form a strategic alliance with other companies, partner with another electric or gas utility or possibly even sell them outright.
Kansas-based Western Resources is exploring “several strategicalternatives” for its electric utility operations, which includefinding a merger partner as it attempts to separate its regulatedand unregulated assets and strengthen its market position. If amerger partner can’t be found, Western plans to look at otheroptions for its two electric utilities, KPL and KGE. It may form astrategic alliance with other companies, partner with anotherelectric or gas utility or possibly even sell them outright.
Mexico’s energy regulatory commission (CRE) defined the gasdistribution geographic zone of North Bajio to includemunicipalities Aguascalientes-Jesus Maria-San Francisco de losRomo, Aguascalientes; San Luis Potosi-Soledad de Graciano Sanchez,San Luis Potosi; and Zacatecas-Guadalupe, Fresnillo, Calera andMorelos, Zacatecas. About $35 million will be needed to develop thedistribution network, the CRE said. Belgian company Tractebel issaid to be interested in developing the distribution system. Theregion has more than 1.6 million residents and 342,000 homes 86% ofwhich are equipped with running water and liquefied propane gasinstallations. The homes consume about 16.2 MMcf/d of propane.
El Paso’s planned maintenance at Alamo Lake Station was expandedto include a total station shutdown Wednesday. Alamo Lake No.1turbine will be down today and Tuesday, reducing Havasu Crossovercapacity by 100 MMcf/d. The No.2 turbine will also be downWednesday for a total Havasu cut of 150 MMcf/d. To coincide withthis outage and minimize impact on San Juan Basin supplies, theNavajo Station’s 2C turbine will be down for maintenance Wednesday,reducing North Mainline capacity by 155 MMcf/d.