Recovered

A group of independent producers is set to receive more than $1 billion in recovered costs after the federal government last week declined to appeal a court’s order to pay the costs for some offshore California leases that were never developed.

A group of independent producers is set to receive more than $1 billion in recovered costs after the federal government declined to appeal a court’s order to pay the costs for some offshore California leases that were never developed.

The U.S. Court of Appeals for the Federal Circuit Monday ordered the federal government to pay more than $1 billion in recovered costs to a group of exploration and production (E&P) companies, upholding a 2005 federal court’s decision to pay for leases off the California coast that were breached. The decision affirms that the government owes the companies bonuses they paid for Outer Continental Shelf leases.

Fully financially recovered 18 months after emerging from three years in Chapter 11 bankruptcy, Pacific Gas and Electric Co. Friday filed a $682 million general rate increase request for 2007 with the California Public Utilities Commission. The bulk of the request — $481 million — is for its electric distribution utility operations, with the rest covering its natural gas distribution utility ($114 million) and electric generation ($87 million).

In another sign that California’s two major utilities have recovered since the state’s energy crisis, Standard & Poor’s Ratings Services last Wednesday raised their respective credit ratings and declared their individual outlooks were “Stable.”

In another sign that California’s two major utilities have recovered since the state’s energy crisis, Standard & Poor’s Ratings Services Wednesday raised their respective credit ratings and declared their individual outlooks were “Stable.”

Due to nominations exceeding capacity, Transwestern wasallocating capacity Monday on the San Juan Lateral, affecting 18points.

Cash prices Monday recovered all or most of the territory theyhad lost on Friday-and even more in some cases. Buoyed by a sharplyhigher screen and even a bit of re-emerging air conditioning load,cash numbers moved up by about a dime or more at virtually allpoints except Northern California, topped off by scattered gains of20-21 cents. Even crude oil futures, which had been in free-falllate last week, added a little psychological strength by clawingtheir way back above $21/bbl.