Regulation

Recent actions by the California Public Utilities Commission (CPUC) to beef up electric reserve margins and establish multiple receipt points for liquefied natural gas (LNG) imports represent close to $1 billion in increased rate base in the coming years for Sempra Energy’s two utilities, according to Sempra COO Don Felsinger, speaking Tuesday at the Banc of America Securities Energy & Power Conference in Las Vegas.

Recent actions by the California Public Utilities Commission (CPUC) to beef up electric reserve margins and establish multiple receipt points for liquefied natural gas (LNG) imports represent close to $1 billion in increased rate base in the coming years for Sempra Energy’s two utilities, according to Sempra COO Don Felsinger, speaking Tuesday at the Banc of America Securities Energy & Power Conference in Las Vegas.

Recent actions by the California Public Utilities Commission (CPUC) to beef up electric reserve margins and establish multiple receipt points for liquefied natural gas (LNG) imports represent close to $1 billion in increased rate base in the coming years for Sempra Energy’s two utilities, according to Sempra COO Don Felsinger, speaking Tuesday at the Banc of America Securities Energy & Power Conference in Las Vegas.

In a letter to Commodity Futures Trading Commission (CFTC) Chairman James Newsome last Monday, Sens. Dianne Feinstein (D-CA) and Maria Cantwell (D-WA) berated the CFTC for continuing its fight against legislation that would allow more regulatory oversight of the over-the-counter (OTC) energy market.

In a letter to Commodity Futures Trading Commission (CFTC) Chairman James Newsome on Monday, Sens. Dianne Feinstein (D-CA) and Maria Cantwell (D-WA) berated the CFTC for continuing its fight against legislation that would allow more regulatory oversight of the over-the-counter (OTC) energy market.

The Minerals Management Service (MMS) will hold its final public meeting Friday in New Orleans on the potential formation of a new offshore gas and oil pipeline regulatory authority that would be structured to ensure non-discriminatory open access to gas and oil gathering and transportation in the Outer Continental Shelf area of the Gulf of Mexico.

Drawing a legal distinction between facilities and companies developing them, the California Public Utilities Commission Thursday unanimously instituted an investigation of the proposed liquefied natural gas (LNG) receiving terminal in Long Beach Harbor, including the determination that the Mitsubishi Corp. subsidiary proposing to build the terminal is a “public utility” under California law and must gain CPUC approval to build the project.

The New Mexico Public Regulation Commission has unanimously approved a $22 million revenue increase for PNM Resources’ gas utility, with the business rate increase to take effect immediately. The utility serves about 450,000 residential and business natural gas customers in the state. The commission’s final order accepts a compromise agreement negotiated in December by the company, commission staff and the industrial customer group. All parties to the rate proceeding have indicated they would not appeal the order. The settlement provides for a $20 million increase in gas rates and a $2 million increase in other service fees and charges. The new rates offer the company the opportunity to earn a 10.25% return on equity in its gas utility operations. Assuming normal weather, the company estimates that two-thirds of the rate increase will be realized in 2004 earnings. Because of concerns regarding the impact of higher rates during the current winter heating season, the negotiated settlement postpones the start of the residential portion of the rate increase until April 2004, while business customers will see an immediate rate hike. The residential customers will account for about 82% of the total rate increase on an annualized basis, with the remaining 18% from business customers.

The New Mexico Public Regulation Commission on Tuesday unanimously approved a $22 million revenue increase for PNM Resources gas utility, with the business rate increase to take effect immediately. The utility serves about 450,000 residential and business natural gas customers in the state.