Pushes

The Oregon Senate last week signed off on a measure that would push back state implementation of electric restructuring into early 2002 from a current schedule of Oct. 1, 2001. The Oregon House was expected to take up the measure as early as yesterday, and if the lower chamber signs off on it, the bill will wind up on Gov. John Kitzhaber’s desk.

Since the “near-term problems” involving the California power market and added funding for low-income energy assistance seem to have become less pressing, Chairman Jeff Bingaman (D-NM) announced last week that the Senate Energy and Natural Resources Committee will move up its consideration of comprehensive legislation that will address long-term energy issues.

Energy East Corp., which continues to favor consolidating the New York, New England and Pennsylvania-New Jersey-Maryland independent system operators (ISOs), recently offered a blueprint of ways to improve an ongoing process under which the Northeast ISOs are looking to enhance regional reliability.

Since the “near-term problems” involving the California power market and increased funding for low-income energy assistance seem to have been resolved or are close to it, Chairman Jeff Bingaman (D-NM) announced yesterday the Senate Energy and Natural Resources Committee will move up its consideration of comprehensive legislation that will address long-term energy issues.

Energy East Corp., which continues to favor consolidating the New York, New England and Pennsylvania-New Jersey-Maryland independent system operators (ISOs), recently offered a blueprint of ways to improve an ongoing process under which the Northeast ISOs are looking to enhance regional reliability.

The complete lack of demand and flood of supply on the market last week left many considering a return to historical price levels, particularly in the Rockies on Friday where prices dropped to near $1. The $5-$6 dollar crash in prices at the Southern California border into SoCalGas last week including a $2 tumble on Friday and the recent declines in western power prices were enough to prompt California Governor Gray Davis to declare the “war” on energy prices officially “won.”

Except for OFO-inspired upticks in Northern California, the restof the cash market was on a downhill track Tuesday following theholiday weekend. Most declines were in the range of 20-30 cents,but tended to be larger in the Northeast and got as high as about70 cents at the Southern California border.

Following on the heels of yet another early morning Accesstrading buying surge, natural gas futures pressed higher againMonday as short-term weather forecasts corroborated medium rangeoutlooks that last week called for an invasion of Arctic air notseen in the United States in several years.

In a take-it-or-leave-it gesture, California consumer advocatesTuesday handed the governor and state legislature an ultimatum torollback electric industry restructuring and insert the state in anexpanded role over the development and operation of power plants.If the elected officials fail to act, the consumer activists planto put another measure on the statewide ballot in 2002.