Reality

An economic reality of the energy sector’s ongoing woes is that companies with cash and creditworthiness will be buying the assets of troubled companies who have been forced to sell to restore their tattered balance sheets. San Diego-based Sempra Energy’s CEO said his company will be among the buyers.

An economic reality of the energy sector’s ongoing woes is that companies with cash and creditworthiness will be buying the assets of troubled companies who have been forced to sell to restore their tattered balance sheets. San Diego-based Sempra Energy’s CEO said his company will be among the buyers.

An economic reality of the energy sector’s ongoing woes is that companies with cash and creditworthiness will be buying the assets of troubled companies who have been forced to sell to restore their tattered balance sheets. San Diego-based Sempra Energy’s CEO said his company will be among the buyers.

Offshore liquefied natural gas (LNG) and compressed natural gas (CNG) terminals came closer to reality last Tuesday with the passage of H.R. 3983 by the House of Representatives. If the Maritime Transportation Antiterrorism Act of 2002 becomes law in its current form, among other things it would allow the Department of Transportation to license offshore port facilities for both LNG and CNG, an option currently reserved only for oil.

The proposed merger between Potomac Electric Power Co. and Conectiv came one step closer to becoming a reality last Tuesday after the Delaware Public Service Commission (PSC) voted to approve the transaction.

So much for the “reality” of fundamental weakness forcing prices into a consolidation period. That had appeared to be the case Thursday, but it was being repudiated in a huge way Friday. Gas quotes for the weekend advanced by 20 cents or more at all points, with the West’s larger gains being driven both by cold weather and sharply higher prices for electricity.

While he strongly supports a money settlement between parties in the high profile case alleging affiliate and market-power abuse on the part of El Paso Corp. subsidiaries, FERC Chief Administrative Law Judge Curtis Wagner Jr. indicated that he won’t postpone issuing his initial decision to accommodate settlement negotiations. Assuming a settlement is not brokered, Wagner said he “feels strongly that this case should proceed to decision at the very earliest possible date.”

Liquefied natural gas (LNG) imports will be a reality on the U.S. West Coast within five years with North Baja in Mexico as its base, and San Diego-based Sempra Energy intends to be a “significant player” in the developing business, according to Sempra’s CEO Steve Baum, speaking Thursday during the company’s second quarter earnings conference call.

PG&E Corp. moved another step closer to full approval of itsproposed 1,040 MW natural gas-fired plant to be located in MaricopaCounty, AZ. The Maricopa County Board of Supervisors unanimouslyapproved a special use permit for the pending electric generationfacility to be positioned near Phoenix.