March

California Energy Commission (CEC) Chairman William Keese said last week he was leaving the power plant siting and energy planning commission as of March 4. Keese, an attorney, made the announcement as part of the commission’s regular business meeting last Wednesday in Sacramento. Originally appointed to the commission in 1997 by then Gov. Pete Wilson, Keese was re-appointed by Gov. Gray Davis in the midst of the 2000-2001 western energy crisis. He alluded to that in making his announcement, indicating he never planned to stay on the CEC as long as he has. His fellow commissioners expressed surprise at Keese’s decision, and lauded his leadership in recent years. Keese’s current term was set to run until the end of this year. At Gov. Arnold Schwarzenegger’s request, Keese will continue to be California’s designee and co-chair of the Western Governors’ Association advisory committee on “clean and diversified” energy. Schwarzenegger will have 30 days after Keese leaves to name a replacement to fill out his term.

Royal Dutch/Shell Group has agreed to pay $4.6 million in severance to Walter van de Vijver, the exploration and production chief who resigned in March as the company’s energy reserves scandal unfolded.

With normal cooling degree and heating degree days in the third and fourth quarters, Stephen Smith Energy Associates estimated in its latest Monthly Energy Outlook that third quarter Henry Hub natural gas prices will average $5.82/Mcf and fourth quarter prices will be $5.62, yielding an average annual forecast of $5.80 for 2004. If the estimate holds, gas prices would average 40 cents higher than in 2003, but would be well below the $6.20 average set by Energy and Environmental Analysis Inc. (EEA) consultants last week (see related story).

Results from a FERC staff survey sent to energy companies in March show that industry’s confidence in and use of published natural gas price indexes are relatively high, but the level of participation in the publishers’ price surveys is still an open question.

Only two days after announcing completion of repairs at Olga Compressor Station in southeast Louisiana (see Daily GPI, March 30), Sonat said Wednesday it had experienced a new unscheduled outage at Olga that again requires a reduction in interruptible receipt (A-1 and/or IT) capacity on the 26-inch Main Pass Area line until further notice.

The cold weather that returned to key natural gas consuming regions this month could stay through April, leading to lower-than-expected season ending gas storage levels, Weather Services International (WSI) said in its spring forecast released on Monday. Meanwhile, power prices in the Northeast will be moderated by the cooler weather expected over the next three months, the company said.

The cold weather that returned to key natural gas consuming regions this month could stay through April, leading to lower-than-expected season ending gas storage levels, Weather Services International (WSI) said in its spring forecast released on Monday. Meanwhile, power prices in the Northeast will be moderated by the cooler weather expected over the next three months, the company said.

A story, titled Michigan ALJ Rules Against Consumers Energy Rate Hike, that ran in Daily GPI on March 15 contained an error in the second paragraph. Contrary to what the story said, on Dec. 18, 2003 Consumers Energy Chairman Ken Whipple sent a letter to the executive secretary of the Michigan Public Service Commission voluntarily agreeing to limit the utility company’s annual dividend payment to its parent company, CMS Energy, to $190 million in exchange for receiving the interim rate relief requested. NGI regrets the error.

Tennessee has scheduled about 12 hours of pigging activity March 8 on part of its Blue Water System offshore Louisiana. Specifically, Line #523M-100 will be pigged from Vermilion 245 to Ship Shoal 198. Only a Shell Oil meter (#012435) will be shut in during the work, but other meters in the area likely will experience higher than normal pressures, Tennessee said.