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ALJ Finds REX Fuel Tracker Unlawful; Calls for $22.2M Refund

A FERC administrative law judge (ALJ) initial decision issued last week has found that the fuel tracking provisions for Rockies Express Pipeline LLC (REX) are not just and reasonable, recommended refunds to shippers of $22.2 million, and endorsed an alternative to the existing tracker, which was found to be overly complex and almost impossible to monitor.

July 8, 2013

Industry Brief

Pacific Gas and Electric Co. (PG&E) late last Friday filed its second annual report to state regulators summarizing its progress on current and future work aimed at improving its natural gas system’s safety as mandated by a state law (SB 705) passed in 2011 in response to the 2010 San Bruno transmission pipeline failure. Under its pipeline safety enhancement plan, PG&E told the California Public Utilities Commission that it has strength-tested 456 miles of its 6,750-mile gas transmission pipeline system. The utility said its has installed 76 automated shutoff valves on critical parts of the system while validating the safe operating pressure for the entire system. In addition, the utility said it is pursuing an internationally recognized gas safety certification for its system called “Publicly Available Specification (PAS) 55”; it also has established an employee-led company wide, grassroots safety committee to promote safe work habits, best practices and open communications; and it has a new Corrective Action Program to collect and act on gas system issues and ideas though a central internal company processing center. In addition, PG&E said its ongoing gas safety plan overall has been reviewed by several outside parties and includes input from employees at all levels of the PG&E gas operations organization.

July 2, 2013

Shale Gas, Oil ‘Globally Abundant,’ EIA Says

Estimated global shale gas and shale oil resources represent 32% of the world’s natural gas and 10% of the world’s crude oil technically recoverable resources, according to an assessment released last week by the U.S. Energy Information Administration (EIA).

June 17, 2013

DOE to Rule ‘Expeditiously’ On Pending LNG Permits

After dancing around the issue for a few minutes last Thursday, Energy Secretary Ernest Moniz said federal officials plan to “move expeditiously” on applications to export liquefied natural gas (LNG) to countries without free trade agreements (FTA) with the United States.

June 17, 2013

Natural Gas Not Sole Climate Change Solution, Says IEA

The United States last year curbed greenhouse gas (GHG) emissions to mid-1990 levels in large part to utilities burning more natural gas, but that reduction will be difficult to duplicate globally, according to the International Energy Agency (IEA).

June 17, 2013

Natural Gas Alone Won’t Solve Climate Change, Says IEA

The United States last year curbed greenhouse gas (GHG) emissions to mid-1990 levels in large part to utilities burning more natural gas, but that reduction will be difficult to duplicate globally, according to the International Energy Agency (IEA).

June 11, 2013

Safety No. 1 Priority, Say Canada Pipeline CEOs

The chief executives of Canada’s five biggest pipeline companies last week vowed to elevate safety to a top priority.

June 10, 2013

Chesapeake Making Progress, Now ‘Stable,’ Says Moody’s

Chesapeake Energy Corp.’s credit rating was upgraded last week by Moody’s Investors Services to “stable” from “negative” because of progress made to reduce capital spending (capex) and improve liquidity.

June 10, 2013

Kinder Morgan Shelves Permian-California Crude Pipeline

Following an unsuccessful open season, Kinder Morgan Energy Partners LP (KMP) has shelved plans for the Freedom Pipeline, which would have carried Permian Basin crude oil from Texas to California refineries.

June 3, 2013

Buffett’s Energy Treasure Chest Grows with NV Energy

With its latest $5.59 billion acquisition of Las Vegas-based NV Energy Inc., announced last week, Berkshire Hathaway Inc.’s MidAmerican Energy Holdings Co. would be a $66 billion natural gas and electric utility serving more than eight million customers globally, with a line-up that includes two major U.S. interstate natural gas pipelines, a renewable energy portfolio, as well as international grid and generation businesses.

June 3, 2013