Nagging

In his first address to a joint session of Congress Tuesday night, President Obama heralded renewable fuels as the solution to the country’s nagging energy problems, while the Republicans in their response stressed the need for diversity in the U.S. energy mix, including stepped-up domestic oil and natural gas drilling.

Despite another nagging loss in consolidated net income, Sioux Falls, SD-based NorthWestern Corp. reported a profit ($6.4 million, or 18 cents/share) from continuing operations for the second quarter, compared to a loss of $14.4 million from continuing operations for the same period last year.

Depending on your perspective, California either moved towardfuture solutions to its nagging energy crisis or took several stepsbackward yesterday with the launch of its electricity bulk buyingprogram for long-term, fixed-price supplies.

Although it gets 13 parties to agree on solving the naggingproblem of imbalances, a new Pacific Gas and Electric settlementagreement on transmission and storage is just the first of a numberof changes anticipated under California’s ongoing gas industryrestructuring. Even for this step, state regulators still mustreact to the agreement and then market participants must assesswhether the provisions will result in the market efficiencies andcost-savings that shippers are anticipating.

Although getting 13 parties to agree on how to solve the naggingproblem of imbalances, a new Pacific Gas and Electric Co.settlement agreement on its transmission and storage operations isjust the first of a number of changes that are anticipated underCalifornia’s ongoing gas industry restructuring program. Even forthis step, state regulators still must react to the agreement andthen market participants must assess whether the provisions willresult in the market efficiencies and cost-savings that shippersare anticipating.