Initiative

The Federal Energy Regulatory Commission yesterday approved aninitiative calling for it to conduct an inquiry into projecteddemand for natural gas in the Northeast quadrant of the UnitedStates and the corresponding need for new pipeline capacity in theregion.

FERC yesterday approved an initiative paving the way for it tobegin discussions with state regulators as a preliminary step topotentially dividing up the nationwide electricity transmissiongrid into regional districts and boundaries to further promotecompetition and eliminate undue discrimination against powercustomers.

FERC last week approved, subject to modifications, a majorsettlement that spells out how Natural Gas Pipeline Co. of America(NGPL) will auction off long- and short-term transportationcapacity on its system. The decision was seen as a big win for theMidwest pipeline, with the Commission siding with it on keycontested auction-related issues.

Electric power and business interests throughout California arehailing the overwhelming voter rejection of Prop 9 (72%-28%), theelectric reform initiative that would have crippled California’scomplex pioneering effort at creating a competitive electricitymarket. Similar reactions were echoed on the East Coast whereQuestion 4 in Massachusetts was passed by voters, sustaining itsongoing electricity competition.