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Over the objections of its former president, the California Public Utilities Commission Thursday approved on a 4-1 vote a $6.7 million performance-based ratemaking (PBR) award for San Diego Gas and Electric Co. under its incentive mechanism for buying natural gas supplies.

Western Canadian natural gas wellhead deliverability has declined more than expected despite a higher than expected drilling rate last year, the National Energy Board (NEB) said in its December 2002 Energy Market Assessment of Short-Term Natural Gas Deliverability from the Western Canada Sedimentary Basin (WCSB) 2002-2004. The NEB projects that by the end of 2004 deliverability from WCSB wells will have fallen by a total of 710 MMcf/d from December 2001 levels and by 375 MMcf/d from levels at the end of this year.

Western Canadian natural gas wellhead deliverability has declined more than expected despite a higher than expected drilling rate last year, the National Energy Board (NEB) said in its December 2002 Energy Market Assessment of Short-Term Natural Gas Deliverability from the Western Canada Sedimentary Basin (WCSB) 2002-2004. The NEB projects that by the end of 2004 deliverability from WCSB wells will have fallen by a total of 710 MMcf/d from December 2001 levels and by 375 MMcf/d from levels at the end of this year.

Price increases continued Tuesday but at a much slower rate in most of the East, which also saw flat to about a nickel lower numbers at Northeast citygates. Meanwhile, another strong run-up in the San Juan Basin helped induce Rockies points to realize moderately larger gains than they had recorded Monday. California, Pacific Northwest and Western Canada quotes again emulated the overall market with increases of less than a dime in most cases.

There is no evidence that Nicor Inc. affiliate Nicor Gas committed criminal fraud in carrying out its performance-based rate (PBR) program for Illinois gas customers, but the local distribution company (LDC) did overcharge its customers by an estimated $15 million over the past couple of years, according to the results of an independent report commissioned by a special committee that was named by the company’s board of directors.

There is no evidence that Nicor Inc. affiliate Nicor Gas engaged in criminal fraud in carrying out its performance-based rate (PBR) program for Illinois gas customers, but the local distribution company (LDC) did overcharge its customers by an estimated $15 million over the past couple of years, according to the results of an independent report commissioned by a special committee that was named by the company’s board of directors.

ANR Pipeline said it will limit interruptible (rate schedule DDS and MBS) storage account activity for the remainder of the injection period (through October 31). Due to current and projected storage inventory, it is notifying all DDS and MBS customers that their account balances, as of Sept. 16 will be limited to zero net injections from Sept. 17 through Oct. 31. ANR said it will continue to allow injections into either DDS or MBS during this period provided that an equal or greater amount of gas is withdrawn prior to Nov. 1. Daily operating conditions and firm service confirmations will determine the daily level of interruptible storage activity allowed.

In the midst of less cheerful news this month, Spokane, WA-based Avista Corp. Thursday asked the Oregon Public Utilities Commission for a 7.1% decrease in its natural gas rates for the 80,000 customers it serves in that state. It is the second gas decrease this year, reflecting the downturn overall in wholesale natural gas prices.

Consumer unrest in the face of substantial retail power rate increases over the past 12 months throughout Oregon bubbled to the top last week with stronger calls for a consumer-county government spawned effort to buy Portland General Electric Co. (PGE) from its bankrupt parent, Enron Corp. The proposal envisions rolling back rates and turning PGE into a nonprofit utility. However, none of the local government entities has endorsed the proposal at this time.