Obtaining

As it remains ambivalent about importing new liquefied natural gas (LNG) supplies, California faces increased competition from other parts of the nation in obtaining adequate future gas supplies and it can expect the prices to be higher in years to come. That is one of the key conclusions in the latest draft of the California Energy Commission’s (CEC) 2007 Integrated Energy Policy Report (IEPR), which was recently released for public review.

With a new state global climate change law and increasing industry pressure, Bellevue, WA-based Puget Sound Energy (PSE) Thursday sent a considerably more conservation- and clean energy-focused integrated resource plan (IRP) to the Washington Utilities and Transportation Commission (WUTC). It emphasizes energy-saving programs, renewable resources and natural gas-produced electricity supplies over the next 20 years.

With a new state global climate change law and increasing industry pressure, Bellevue, WA-based Puget Sound Energy (PSE) Thursday sent a considerably more conservation- and clean energy-focused integrated resource plan (IRP) to the Washington Utilities and Transportation Commission (WUTC), carrying implications for future natural gas-fired power generation in the Pacific Northwest. The new IRP emphasizes energy-saving programs, renewable resources and natural gas-produced electricity supplies over the next 20 years.

WPS Resources Corp. and Peoples Energy Corp. said last week that they have made progress toward obtaining the approvals needed to close their proposed $1.52 billion merger, including a resolution of issues with all complaining parties in Illinois. The companies added that the proposed merger remains on track for completion during the first quarter of 2007 (see NGI, July 17, 2006).

WPS Resources Corp. and Peoples Energy Corp. said Tuesday that they have made progress toward obtaining the approvals needed to close their proposed $1.52 billion merger, including a resolution of issues with most intervening parties in Illinois. The companies added that the proposed merger remains on track for completion during the first quarter of 2007 (see Daily GPI, July 7, 2006).

FERC on Wednesday upheld an April finding that Washington state environmental regulators, by failing to act by the allotted deadlines, had waived the certification requirements under the Clean Water Act (CWA) and Coastal Zone Management Act (CZMA) with respect to Georgia Strait Crossing Pipeline LP’s natural gas pipeline project in the Pacific Northwest.

Dynegy Inc. is moving forward with its long-term restructuring and refinancing plans after obtaining nearly 100% approval from its lenders to proceed. The deal, announced earlier this month (see Daily GPI, July 16), required 67% approval by the lenders; Dynegy currently has more than 99% approval.

The Interior Department’s Minerals Management Service (MMS) has issued on final rule on new procedures for obtaining royalty relief for certain offshore federal deepwater leases. It will allow some lease operators to apply for additional discretionary relief where royalty relief in the lease term is insufficient and the marginal nature of the project will preclude its further development.

Where the Minerals Management Service has so far failed inobtaining more gas royalties through changes in its valuationmethods, the Justice Department hopes to succeed through thecourts, producers say.