After navigating California regulatory maze successfully withsome precedent-setting environmental planning, the backers of thefirst new power plant slated for electron-starved San Diego Countystill have some difficult decisions ahead regarding gas supply forthe 500-MW Otay Mesa generating plant.
Precedent
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High Prices, Alerts Continue in CA
The legislative architect of California’s 1996 precedent-settingelectric industry restructuring law Monday proposed a $2 billionreserve be carved out of the state’s next fiscal budget to fund astate effort to buy or build new generation plants. Theannouncement came at the same time the state energy commission,which approves all new power plants of 50 MW or larger, released alegislatively mandated report that concludes the state’s generationresources are adequate, and temporary peaking plants are not neededfor the upcoming summer.
South Jersey Gas Receives Rate Increase From BPU
The New Jersey Board of Public Utilities (BPU) followed its ownprecedent set in early October in rulings involving three otherstate utilities by granting South Jersey Gas last week almost halfof the Levelized Gas Adjustment Clause increase it requested tomeet higher wholesale natural gas prices. The utility hadpetitioned for a 39.7% rate increase, but the board granted thecompany a 19% annual raise.
South Jersey Gas Receives Rate Increase
The New Jersey Board of Public Utilities (BPU) followed its ownprecedent that it had set back in early October with three otherstate utilities by granting South Jersey Gas almost half of theLevelized Gas Adjustment Clause increase it had petitioned for tomeet higher wholesale natural gas prices. The utility hadpetitioned for a 39.7% rate increase, but the board granted thecompany a 19% annual raise.
Finding Cheap Gas is Next Hurdle for Otay Mesa
After navigating California regulatory maze successfully withsome precedent-setting environmental planning, the backers of thefirst new power plant slated for electron-starved San Diego Countystill have some difficult decisions ahead regarding gas supply forthe 500-MW Otay Mesa generating plant.
CPUC Seeks Social Costs from Bypassing Questar Line
California regulators have taken a potentially precedent-settingstep by asking FERC to condition a certificate for Questar’sproposed Southern Trails Pipeline on the company first agreeing torecover from its in-state customers the costs of social programsthat would be potentially stranded by its bypass of SouthernCalifornia Gas (SoCalGas).
CPUC Seeks Social Costs from Bypassing Questar Line
California regulators have taken a potentially precedent-settingstep by asking FERC to condition a certificate for Questar’sproposed Southern Trails Pipeline on the company first agreeing torecover from in-state customers the costs of social programs thatwould be potentially stranded by its bypass of Southern CaliforniaGas (SoCalGas).
Utilipro Assembles Posse for Marketer Services
AGL Resources is capitalizing on the experience gained in theprecedent-setting unbundling of its Atlanta Gas Light subsidiary,organizing a separate partnership to offer all the services acompany will need to move into the competitive market.
Koch’s Market-Based Rates Shot Down at FERC
In a reversal of an ALJ initial decision viewed as potentiallyprecedent-setting, FERC last week denied market-based rates fortransportation to Koch Gateway Pipeline after finding it fell farshort of substantiating its claim that it lacked market power. Itmarked the first time that the Commission had considered a requestfor market-based transportation rates on a major long-haul gaspipeline. In 1996, FERC approved similar rate authority for K NInterstate Gas Transmission’s Buffalo Wallow system, but thatinvolved short-haul transportation.