Objections

Over the lone objections of the former head state regulator, Pacific Gas and Electric Co. Thursday received a $7.6 million conditioned reward from state regulators for its natural gas buying in 2001-02, including the period of extreme wholesale energy price spikes. The reward for keeping costs below a formula tied to gas price indices was less than half of the almost $17 million requested by the utility and was subject to future forfeiture pending the outcome of pending California wholesale border price investigations.

Over the objections of its former president, the California Public Utilities Commission Thursday approved on a 4-1 vote a $6.7 million performance-based ratemaking (PBR) award for San Diego Gas and Electric Co. under its incentive mechanism for buying natural gas supplies.

Over the objections of its former president, the California Public Utilities Commission Thursday approved on a 4-1 vote a $6.7 million performance-based ratemaking (PBR) award for San Diego Gas and Electric Co. under its incentive mechanism for buying natural gas supplies.

Turning aside objections made by generators, FERC last Thursday agreed to a request made by the California Independent System Operator (CAISO) that will allow the grid operator to extend its existing market design, including a hard price cap of $91.87/MWh, through the end of October as CAISO continues to work out kinks in mitigation-related software.

Canada’s National Energy Board has established a mediation process for the resolution of landowner objections during detailed route hearings for oil and natural gas pipelines and power lines. The board sent out for comment in January 2001 a draft of its proposed Mediation Practice Direction to various landowners, landowner representatives and industry stakeholders across the country. It also sought comments and suggestions for using alternative dispute resolution tools for other types of applications. The board has now reviewed and analyzed comments received and, in light of the overall support indicated by many of the respondents, has decided to implement a voluntary mediation process at the detailed route stage of its proceedings. This will provide an alternative method for landowners and companies to resolve disputes over the detailed routes of pipelines and power lines. The board has revised the draft Mediation Practice Direction and incorporated many of the suggestions made by the participants, and will make the process available, if it is requested. For a copy of the draft Mediation Practice Direction, visit the NEB’s web site at http://www.neb.gc.ca/pubs/pdmdro.pdf .

Despite the objections of potential competitor SouthernCalifornia Gas (SoCal), FERC last week awarded Questar SouthernTrails Pipeline Co. a certificate to build a new 693-mile pipelinethat would directly serve customers in southern California —territory that has long been dominated by SoCal.

Despite the objections of potential competitor SouthernCalifornia Gas (SoCal), FERC has awarded Questar Southern TrailsPipeline Co. a certificate to build a new 693-mile pipeline thatwould directly serve customers in southern California — aterritory that has long been dominated by SoCal.

FERC last week approved an amended certificate for SouthernNatural Gas (Sonat) to build a controversial mainline extensionthat’s intended to provide customers with an alternative to theexisting pipeline now serving northern Alabama. The fate of theproject, however, still hangs in the balance since the InteriorDepartment’s Fish and Wildlife Service (FWS) hasn’t yet issuedSonat a permit to build through a protected wildlife refuge.

Amoco’s objections and its standing as a major customer ofTrailblazer Pipeline have made it impossible for the Federal EnergyRegulatory Commission to approve a settlement on new rates, FERCsaid in dumping the dilemma back in the lap of an administrativelaw judge.