As another week passed without a settlement among state political, regulatory and energy stakeholders, California state officials continued to push on with investigations and proposed punitive legislative measures aimed at merchant generators and marketers that are accused of price-gouging in the state’s wholesale power and natural gas markets.
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CA Scrambles for Summer Power Remedies
It caused a political stir, but nary a megawatt changed Tuesday when California energy-buying officials turned over to the state controller seven more power contracts that cover supplies this summer. State Controller Kathleen Connell Monday expressed concerns that the state’s much-publicized long-term contracting was going to be woefully short this summer, causing billions of more dollars to be needed for spot market purchases.
SoCalGas Finds Room for Further Pipeline Expansion
Under political pressure to add gas transportation capacity in the state of California, Sempra subsidiary Southern California Gas announced additional plans to expand its intrastate pipeline system. The company said it will add another 6% of capacity to its previously announced project, bringing the proposed expansion to an 11% increase in capacity or about 200 MMcf/d.
SoCalGas Finds Room for Further Pipeline Expansion
Under political pressure to add gas transportation capacity in the state of California, Sempra subsidiary Southern California Gas announced additional plans to expand its intrastate pipeline system. The company said it will add another 6% of capacity to its previously announced project, bringing the proposed expansion to an 11% increase in capacity or about 200 MMcf/d.
California Power Deals Remain Unsigned
Despite numerous press conferences and a lot of hype from political leaders, the bulk of the nearly 10,000 MW in California’s long-term electricity deals still have not been nailed down in formal signed contracts. The agreements are suppose to provide up to 7,000 MW this year and up to 10,000 MW over next 10 years.
California Class Action Suits Hit El Paso, Sempra
Class-action lawsuits overshadowed the political finger-pointing in California last week as multiple El Paso Energy and Sempra Energy subsidiaries were hit with complaints for alleged conspiracy and price manipulation that led to abnormally high gas prices for consumers.
LA, Long Beach Sue Sempra, El Paso
Class action lawsuits are bidding to overtake politicalfinger-pointing as more prevalent this week in the increasinglymurky California energy landscape. The cities of Los Angeles andLong Beach filed separate class action suits Wednesday in LosAngeles Superior Court against Sempra Energy’s two utilitycompanies and El Paso Natural Gas Co. for allegedly conspiring inthe mid-1990s to block the development of two new interstate gaspipelines into the state, resulting in excessively high prices atthe California-Arizona border. Action by the court is not expectedany time soon, according to Long Beach’s city attorney.
CA Republicans Call for Special Session on Natural Gas Issues
Hoping to make some political points and address a somewhatforgotten side of California’s energy woes, the minority RepublicanParty leaders in the state legislature Monday asked Gov. Gray Davisto call a second, concurrent special session of the state lawmakersto address natural gas supply and price issues that are related tothe electricity crisis.
CA Electricity Woes Converge on Grid’s ‘Path 15’
As the battle over how best to solve California’s electricitywoes bounces around the regulatory and political halls inCalifornia and Washington, DC, an immovable stumbling block thatcan’t be fixed by new legislation or regulatory decisions is anoverworked electricity highway called “Path 15.”
Davis Goes to White House; Focus Shifts to Political Arena
California’s governor met with President Clinton in the WhiteHouse Wednesday and came away with an extension of the federalenergy secretary’s emergency order for another week, assuring thestate it can count on extra electricity supplies when needed. Thestate’s independent grid operator indicated it has been receivingabout 300 MW of power under the emergency mandate over the past twoweeks.