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As part of an annual review and overview for state lawmakers, California’s chief utility regulator, Michael Peevey, last Wednesday provided a broad energy picture that included higher rates for electricity and natural gas but increased reliability, infrastructure additions and renewable/energy efficiency programs. Peevey also pointed to streamlining of the regulatory processes last year, compared to the previous year.

A decision last month in which FERC reversed its policy on negotiated rates by allowing pipelines to enter into transactions tied to natural gas basis differentials “has now unleashed again a regulatory regime which will permit market manipulation,” BP America Production Co. and affiliate BP Energy told FERC this week.

After throbbing drums, wailing fiddle reels and whirling dancers provided a stirring opening in Inuvik Jan. 25 to Canadian northern pipeline hearings, a pro-development regional majority wasted no time in telling the reluctant minority to get in step.

Transco issued an Imbalance OFO with 5% tolerance for positive imbalances, effective Tuesday until further notice. The pipeline noted that it has provided repeated notice of limited operating flexibility as a result of moderate temperatures throughout its market area, but continued to experience “an unacceptable increase” in due-shipper imbalances since it ended an Operational Control Friday (see Daily GPI, Nov. 14). “This has created exigent circumstances that require immediate action,” it said. Customers with daily due-pipeline imbalance will not be subject to penalty.

Coming in well above industry expectations, the 61 Bcf natural gas injection for the week ended Nov. 4 provided further justification for the recent bearish move in natural gas futures. Despite trading as low as $11.060 on the day, December natural gas ended up settling at $11.380, down 28.9 cents on the day.

The Senate voted down an amendment Thursday that would have provided an additional $3.1 billion of funding for the Low-Income Home Energy Assistance Program (LIHEAP) in the upcoming winter heating season.

Falcon Gas Storage announced Wednesday that GAStorage Investment LLC, a company organized by Arcapita, a global investment group, has bought a 90% equity stake in Falcon and has provided additional capital to complete the construction Falcon’s gas storage facilities. The total value of the initial transaction is $100 million.

Lacking the punch that Monday’s 32.8-cent increase provided, July natural gas futures on Tuesday failed to back off much, keeping the $7.43 contract high from last Wednesday still firmly within reach.

In a now-familiar pattern, prices rebounded at nearly all points Monday by amounts ranging from about a nickel to half a dollar or so. Although cold weather forecasts weren’t able to keep quotes from falling Friday, enough moderate heating load is lingering early this week that along with the return of industrial demand from its usual weekend slump, sellers found no shortage of ready buyers.