June

The Electric Reliability Council of Texas (ERCOT), on track to begin its pilot deregulation program in 5% of the state June 1, issued a progress report to the Texas Public Utility Commission this week, reporting that it now is finalizing megawatt registrations for generators that will serve the state. Conversion remains on schedule for the pilot, with transition to a fully deregulated market by January 2002.

Southern California Edison has asked FERC Chief Administrative Law Judge Curtis Wagner Jr. to issue subpoenas to three pipeline companies and an energy marketer in California in an effort to ferret out “other factors” — aside from those already attributed to El Paso Natural Gas — that may have contributed to the escalating natural gas prices in the state.

FERC last week gave Tennessee Gas Pipeline an extension untilJune 1, 2001 to complete construction of its Eastern ExpressProject 2000 expansion.

FERC last week gave Tennessee Gas Pipeline an extension untilJune 1, 2001 to complete construction of its Eastern ExpressProject 2000 expansion.

Chevron has launched its energy services business, Chevron Energy Solutions, building on its purchase of a block of contracts and related assets from the disbanding PG&E Energy Services (see NGI, June 5).

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.

Swing quotes for the first five days of July saw little changefrom end-of-June numbers in most cases and were stronger at somepoints. However, the July aftermarket did begin at levels downconsiderably from indexes.

Calpine Corp.’s 500 MW Hidalgo Energy Center began commercialoperation June 14, the company said yesterday. In March, thecompany purchased a 78.5% stake in the plant, which is located inEdinburg, TX. The Brownsville Public Utilities Board holds theremaining 21.5%. Calpine operates the energy center and providesfuel management services. The center is located within one mile ofCalpine’s Magic Valley Generating Station, a 730 MW gas-firedfacility currently under construction. The Magic Valley facility isexpected to be on line in the summer of 2001. The Hidalgo plantwill sell power into the Texas wholesale market and potentiallyinto the growing energy markets of northern Mexico.

With June natural gas futures soaring to a dizzying high of$4.50 last week, projections by Lehman Brothers and Salomon SmithBarney that spot prices will average $3.50 the rest of the yearseem a bit too conservative. A few weeks ago, those price levelswould have seemed astronomical.