Reduce

The Virginia State Corporation Commission (VSCC) has approved Virginia Natural Gas’ (VNG) request to use a weather normalization adjustment (WNA) to reduce the effect of weather on customer’s natural gas bills. The company also committed not to file for a general rate increase for at least two years.

California could save billions of dollars and reduce the number of new power plants needed in the state by investing more heavily in energy efficiency, according to a new report released last week by Xenergy. The study found California can save up to 3,500 MW of peak demand and net over $8 billion in savings over the next decade by restoring public efficiency funding to just above 1994 levels (adjusted for inflation).

Previously reported maintenance on the El Paso Natural Gas will reduce capacity on the San Juan Crossover by 150 MMcf/d Sept. 18. Maintenance on the San Juan system also will cut capacity by 250 MMcf/d on Sept. 26 and by 220 MMcf/d Sept. 30-Oct.1. Window Rock 2B repairs have been completed earlier than expected. The capacity of the North Mainline was increased by 25 MMcf/d to 2,305 MMcf/d effective for Cycle 3 on Sept. 17. For operational or capacity impact questions, call Charlie Mathis at (719) 667-7712.

Aquila Inc., formerly UtiliCorp United, announced that it will reduce its workforce as part of a corporate restructuring program that will lead to seven state-focused utility operations. The state-based organizational structure is designed to provide greater operational accountability within Aquila’s seven-state utility operations that serve 1.3 million natural gas and electricity customers in Missouri, Kansas, Nebraska, Colorado, Iowa, Michigan and Minnesota.

To eliminate more than $7.7 million in future obligations, junior independent Republic Resources Inc. said Friday it would sell the oil and gas assets it holds in Louisiana and Texas — all of its revenue-generating assets — to Harken Energy Corp. in a stock trade. Harken has agreed to exchange 2.6 million shares of its common stock for the assets and enter into a Contingent Payment Agreement to evaluate the unproved assets or exploratory prospects in the properties.

El Paso Corp. reported slightly improved fourth quarter earnings last week. Higher transportation rates and lower costs on El Paso Natural Gas, as well as higher production and a favorable hedging program in the production unit, helped earnings improve to 72 cents per share for the quarter (after special charges including Coastal merger-related costs and asset impairments) compared to 65 cents per share in 4Q2000. Earnings before special items were 79 cents per share, a penny above Wall Street estimates. Net income was $375 million compared to $335 million in 4Q2000 ($408 million compared to $403 million excluding special items).

Houston-based Noble Affiliates said Tuesday it would reduce its capital budget for the year, dumping 29% from its downstream projects and cutting more than half of its domestic offshore budget. However, domestic onshore exploration and development was almost doubled from last year’s allocation to $136 million, with the focus on properties picked up through its acquisition last year of Aspect Resources LLC of Denver.

Houston-based Noble Affiliates said Tuesday it would reduce its capital budget for the year, dumping 29% from its downstream projects and cutting more than half of its domestic offshore budget. However, domestic onshore exploration and development was almost doubled from last year’s allocation to $136 million, with the focus on properties picked up through its acquisition last year of Aspect Resources LLC of Denver.

In what it dubs as a “synthesis” of proven operating steps in both eastern and western markets, California’s non-profit electricity transmission grid operator, Cal-ISO, last Wednesday released its draft 2002 Market Design Plan as a starting point that it plans to refine later this month with input from market participants. The plan’s overall objective for what eventually must be a federally approved blueprint is to shrink the grid operator’s real-time market and provide more future wholesale price stability, according to Cal-ISO’s chief architect for the plan.