Making

A small, but hot new fight before the National Energy Board ismaking it official — in Canada, natural gas has become as good asgold, and just the prospect of producing some is worth a battle.

With the distraction of the Democratic Convention in town thisweek, Los Angeles elected officials face a critical vote today onthe city’s future strategy for remaining relatively energyindependent through its operation of the nation’s largest municipalelectric utility.

FERC reaffirmed most of its initial decisions in Order 637 onrehearing last week, making minor adjustments to theright-of-first-refusal (ROFR), penalty and posting provisions inthe major natural gas rule. “…[O]n balance this is a solid,well-reasoned [rehearing] order that retains the character of theoriginal order,” said Commissioner William Massey.

FERC reaffirmed most of its initial decisions in Order 637 onrehearing yesterday, making minor adjustments toright-of-first-refusal (ROFR) and the reporting and postingrequirements of the major natural gas rule.

NRG Energy Inc., a Minneapolis-based wholly owned subsidiary ofNorthern States Power Co., is going public and filed for anoffering of 18% of its common stock. The maximum aggregate offeringprice of the offer is $600 million. All proceeds will remain withNRG Energy.

TransCanada PipeLines Ltd. won a reprieve from a feared revenuehemorrhage but lost a battle for rights to administer strongmedicine of its own making against recurrences of the threat. In aruling on lengthy, hard-fought winter hearings, the National EnergyBoard authorized TransCanada to raise floor prices forinterruptible delivery service on excess capacity to 80% of ratesfor firm service from 50%, effective May 1. But the NEB rejectedpleas by the pipeline to decide independently on setting variableminimum charges on leftover space depending on its reading ofmarket conditions.

TransCanada PipeLines Ltd. won a reprieve from a feared revenuehemorrhage but lost a battle for rights to administer strongmedicine of its own making against recurrences of the threat. In aruling on lengthy, hard-fought winter hearings, the National EnergyBoard authorized TransCanada to raise floor prices forinterruptible delivery service on excess capacity to 80% of ratesfor firm service from 50%, effective May 1. But the NEB rejectedpleas by the pipeline to decide independently on setting variableminimum charges on leftover space depending on its reading ofmarket conditions.

Strong gas prices and the promise of robust demand fromgas-fired generation are making industry executives almost giddy.Production may be waning in the shallow Gulf of Mexico, but it iswaxing in the greater depths. Ditto for LNG imports. Canadianproducers look south and see market, north and see future supply.It’s all good if you can overlook the fact Wall Street isn’t payingmuch attention.

EnergyUSA-TPC, a subsidiary of NiSource, is making good use ofits high deliverability storage expertise, signing on to managesupply for utilities and independent generators while a subsidiaryadds new storage facilities in the Northeast and Mississippi.