Issues

The Federal Energy Regulatory Commission in last meeting of the year last week asked for comments on whether it should require approximately 1,200 power marketers to file financial reports on their derivative and hedging positions.

The Federal Energy Regulatory Commission (FERC) issued a preliminary determination on non-environmental issues to the Islander East Pipeline Co. LLC to build a 40-mile pipeline that will bring natural gas from Connecticut to Long Island, NY.

Despite the drop in natural gas prices, the global recession and energy security issues, Canadian and Alaskan officials — on the governing side anyway — remain optimistic that an Arctic natural gas pipeline is in the offing. But — and there are several buts — officials on both sides still have come to no agreement as to what route the pipe should take and whether there should be one pipe or two. About the only agreement that could be had at the Arctic Gas Symposium in Houston Thursday was that an over-the-top route across the Beaufort Sea may be out of the picture.

On a day in which market power issues took center stage at FERC headquarters, the Commission last Tuesday proposed revising all existing market-based rate tariffs and authorizations in order to prohibit anti-competitive behavior or the exercise of market power. In addition, the Federal Energy Regulatory Commission also instituted a proceeding to establish a refund effective date should it find that electric power rates are unjust and unreasonable.

FERC last week issued a favorable preliminary determination on non-environmental issues to Northwest Pipeline’s proposed 49-mile Grays Harbor Lateral, which would deliver up to 161,500 Dth/d of gas to Duke Energy Grays Harbor LLC’s proposed power plant in the state of Washington. The $75.2 million pipeline project includes two 16-inch diameter taps and would have 4,700 hp of compression from the Turnwater Station.

Given the inability of the natural gas standards-setting organization to resolve the issue of intra-day recalls of released transportation capacity, FERC has issued a notice of proposed rulemaking (NOPR) that would give releasing shippers the flexibility to re-nominate their recalled capacity at the next scheduling opportunity provided by an interstate pipeline.

Given the inability of the natural gas standards-setting organization to resolve the issue of intra-day recalls of released transportation capacity, FERC has issued a notice of proposed rulemaking (NOPR) that would give releasing shippers the flexibility to re-nominate their recalled capacity at the next scheduling opportunity provided by an interstate pipeline.

In his much-awaited initial decision, FERC Chief Administrative Law Judge Curtis Wagner Jr. ruled Tuesday that El Paso Natural Gas engaged in “blatant collusion” by rigging the bidding process for a large block of transportation capacity on its system to favor its merchant-power affiliate. However, he recommended dismissal of the charge that El Paso Merchant Energy Co. illegally exercised market power to drive up prices for natural gas delivered to southern California beginning in mid-2000.

FERC last week directed its senior staff to hold informal discussions with the Florida Public Service Commission (PSC) in response to the PSC’s concerns about the development of GridFlorida, a regional transmission organization (RTO). The PSC concerns focus on state and federal jurisdictional boundaries and responsibilities and the recovery of start-up costs for the RTO.