Regulators

Xcel Energy’s combination Colorado utility filed quarterly rate changes with state regulators that could result in monthly retail natural gas utility bills dropping by up to 8% compared to the first quarter this year. The rate for residential natural gas customers would drop 6.9% from 52.06 cents/therm in1Q2012 to 45.17 cents/therm in 1Q2013; for small businesses, rates would drop 8% from 52.28 cents/therm to 44.82 cents/therm. The Denver-based utility is asking the Colorado Public Utilities Commission for the changes to be effective Jan. 1.

Pacific Gas and Electric Co. (PG&E) has asked California regulators to reject a proposed list of penalties by the state safety staff for the utility’s shortcomings prior to the San Bruno, CA, pipeline explosion.

Colorado regulators have approved a settlement for Rapid City, SD-based Black Hills Corp.’s natural gas utility operations in the state, allowing a small rate increase amounting to less than 1% annually. Black Hills/Colorado Gas Utility Co. put the recommended rate hike into effect Monday, the first base rate increase for the utility since April 2009. Although the increase amounts to only $174,000 more in revenue annually, or an 0.83% increase, Black Hills officials said the approved rates allow it to recover the nearly $30 million the utility has invested in its infrastructure since 2008, along with a 9.6% return on equity. The increase was hammered out in a settlement earlier this year among the utility, Colorado Public Utilities Commission staff and the state Consumer Counsel Office.

Supporters of oil and natural gas exploration in New York are in disagreement with the state regulators over just how much of the state would be open to high-volume hydraulic fracturing (HVHF), while an environmental group called the latest proposal “meaningless.” However, a pair of attorneys with extensive knowledge of New York’s regulatory, business and geological climates said they believe unconventional drilling permits will be issued soon.

Washington state regulators fined Bellevue, WA-based Puget Sound Energy (PSE) $430,000 for improperly charging natural gas and electric utility residential customers for disconnecting their service. The Washington Utilities and Transportation Commission (UTC) approved a multi-party settlement agreement that alleged 1,639 violations by the combination utility of the state’s consumer protection rules. In addition, PSE now has refunded disconnect-visit fees it charged more than 9,000 customers, dating back to December 2009. PSE also has agreed to change its policy regarding the disconnection visits, the UTC said.

With natural gas-fired power generation plants and refineries both in the crosshairs of state regulators, California held its first auction for carbon emissions trading on Thursday, despite the state’s major business association filing a lawsuit to block the auction a day earlier.

Independent researcher Battelle is deploying scientists and engineers to Ohio to collaborate with state regulators about solving water issues at Marcellus and Utica shale drilling sites with new technology.

After resigning earlier this year as Wyoming’s oil/natural gas supervisor after being openly critical of federal environmental regulators (see Shale Daily, June 18), Tom Doll has secured a position as a senior petroleum engineer with the Energy and Environmental Research Center, a nonprofit unit of the University of North Dakota. Doll now works for the center’s oil/natural gas technical group, focusing on reservoir characterization and simulation, geomechanics and providing “operational excellence” for clients. Working remotely from his Wyoming base, Doll also works in emissions control, coal utilization and water management for the Grand Forks, ND-based organization. Wyoming has yet to name a supervisor in its Oil/Gas Conservation Commission to replace Doll.

Energy Secretary Steven Chu should cooperate with other federal agencies to address key issues confronting energy and water, such as hydraulic fracturing processes, according to a new government report.