Lowers

Reflecting the nose-dive in wholesale prices, Southern California Gas Co. in July whacked its retail prices to residential and small business customers by 48%, dropping from 52.1 cents/therm in June to 27 cents this month.

With the sale of the Zama assets to Apache Corp. coming to a closelast week, Phillips Petroleum announced yesterday that the companyexpects to realize approximately $470 million in after-tax proceedsfrom the $490 million dollar sale (see Daily GPI, Jan. 2, 2000).

As an interim measure, the Cal ISO board last week approved (ona 13-10 vote) a load differentiated price cap that was promoted bya consumer advocate representative on the badly splinteredstakeholder board. The action drew swift criticism from generators.

As an interim measure prior to California’s state-charteredelectric transmission grid operator (Cal-ISO) making longer-termchanges, its board of governors adopted by a 13-10 vote lastThursday a load differentiated price cap promoted by a consumeradvocate representative on the badly splintered stakeholder board.The action drew swift criticism from generators through theirWashington, DC-based association.

National Fuel Gas Co. announced last week that it has reached arate settlement agreement with the staff of the Department ofPublic Service, the Consumer Protection Board and multiple otherinterveners. The New York Public Service Commission approved theagreement at its regular session on Oct. 11.

National Fuel Gas Co. announced yesterday that it has reached arate settlement agreement with the staff of the Department ofPublic Service, the Consumer Protection Board and multiple otherinterveners. The New York Public Service Commission approved theagreement at its regular session on Oct. 11.

Continued uncertainty surrounding the recovery of record highwholesale prices for electricity prompted the Fitch rating serviceTuesday to lower its rating outlook from “stable to negative” forCalifornia’s three major investor-owned electric utilities. Themove came in the midst of another week of late summer heatthroughout the state that is pushing up power prices and squeezingsupplies.

Facing more power alerts, near-record demand and strongpolitical pressure, the California Independent System Operator(Cal-ISO) Board Monday voted, 15-6, to lower the price cap to$250/MW for ancillary services, and spent another day discussingwhat combination of fixed-price supply deals and infrastructureupgrades can help the state avoid blackouts and rolling brownoutsthe rest of this summer. The price cap lowering is effective Aug.7.

The finger-pointing and calls for market intervention — mostnotably centered on electricity price caps —heated up fasterthan the temperatures on both coasts this week, with merchantgenerators and incumbent regulated utilities drawing the ire ofstate and federal policymakers.