Issues

Expressing frustration but continuing its resolve, Texas-basedWestern Hub Properties is ironing out some “technical issues” offinancing with California regulators and now expects to startconstruction in February on its delayed Lodi gas storage field innorthern California.

Expressing frustration but continuing its resolve, Texas-basedWestern Hub Properties is ironing out some “technical issues” offinancing with California regulators and now expects to startconstruction in February on its delayed Lodi gas storage field innorthern California.

FERC last week voted out a final rule that lays out the”detailed” requirements electric utilities must meet whensubmitting merger applications. The new rule is intended to helpmerger partners file “more complete” applications upfront, whichthen would improve the odds for speedier processing by theCommission, said Commissioner William Massey, who has led the drivefor a streamlined merger process at FERC.

Avista Corp., flying high on an over-the-top performance by itstrading subsidiary, and CMS Energy, buoyed by favorable powertransactions and cost reductions, both said Friday they will reportabove consensus estimates for the third quarter. Spokane, WA-basedAvista officially will report its earnings Oct. 25, and CMS,headquartered in Dearborn, MI, will follow the next day.

Texas Railroad Commissioner Tony Garza warned the statelegislature and the Texas Congressional delegation last week of anexpected 55% increase in natural gas prices this winter for smallcustomers and the expected continuation of high prices for the nextyear to 18 months.

Texas Railroad Commissioner Tony Garza warned the statelegislature and governor yesterday of an expected 55% increase innatural gas prices this winter for small customers and the expectedcontinuation of high prices for the next year to 18 months.

California regulators ended a busy week Friday, holding another public hearing in San Diego as part of their ongoing investigation of the causes for high summer wholesale electricity prices, zeroing in on the state power market’s structure, rules and suppliers.

As a footnote to the wide-ranging issues emerging fromCalifornia’s electricity wars this summer, the City of Los AngelesDepartment of Water and Power (LADWP) Tuesday paid a record $14million penalty to regional air quality regulators as a result ofrunning its older, more polluting LA Basin generating plantsfull-out this summer. The heavy penalty points up an increasinglytenuous situation for merchant generators who are running out ofways to avoid exceeding their plants’ air emission limits.

California’s leading state legislator for energy issues and thechief architect of its 1996 electricity restructuring law last weekdeclared the state’s electricity market as “not workablycompetitive” and urged that state energy authorities re-establishprice caps at their original levels to mitigate against extremeprice spikes when the weather heats up.