Regulatory

Although El Paso shippers are pleased that the Federal EnergyRegulatory Commission (FERC) finally has recognized that El PasoNatural Gas has been unjustly overselling firm capacity, they areexasperated over the Commission’s proposed solution.

Duke Energy Monday offered to manage San Diego Gas andElectric’s entire power supply in its comments to the FederalEnergy Regulatory Commission on proposals for solving California’snagging wholesale electricity problems. There are no negotiationsongoing, and SDG&E initially indicated it has not received anyformal offer from Duke.

California regulators have appealed to the Federal EnergyRegulatory Commission for help in completing the state’sinvestigation of prices paid in the state’s wholesale electricitymarket this past summer.

As the Federal Energy Regulatory Commission prepared to weigh inthis morning with the federal government’s answer to California’sbe-deviled power market, free market advocates issued last minutewarnings against taking the price cap route espoused by theCal-ISO. FERC’s meeting is scheduled to start at 9 AM EST. (Checkhttp://intelligencepress.com this morning for updates)

Before the Federal Energy Regulatory Commission starts thinkingabout the next generation of natural gas transportation rules, itshould pay attention to how its latest Order 637 rules areenforced, Indicated Producers said in comments submitted to theCommission this week.

The California Independent System Operator (Cal-ISO) Fridayfiled with the Federal Energy Regulatory Commission urging steps betaken, including creating a $100/MWh payment price cap andpenalties for noncompliance, to encourage a return of more suppliesinto the forward, as opposed to the real-time spot, market. Cal-ISOCEO Terry Winter took this action without his governing board’sauthorization.

The Federal Energy Regulatory Commission last week handedload-serving entities (mostly electric utilities) that supply theNew York City power market a present — a targeted rebate of $3.75per kilowatt month.

Consumers Energy filed a request with the Federal EnergyRegulatory Commission (FERC) to transfer its electric transmissionsystem assets to a new wholly owned subsidiary, Michigan ElectricTransmission Company (Michigan Transco). The proposed transfer isthe first step in a plan to sell or transfer control of itstransmission business to a party which meets the requirements ofFERC Order 2000. Michigan Public Act 141, the electric industryrestructuring legislation signed by Governor Engler in June,requires that investor-owned Michigan utilities sell or transfercontrol of their transmission systems to an independentorganization by the end of next year. After the transfer iscompleted, Consumers will function solely as a generation anddistribution company taking service from Michigan Transco underFERC-approved transmission tariffs. “Our next step is to fullyevaluate all alternatives to achieve full independence of thetransmission business,”said David W. Joos, president andCEO-electric.Consumers Energy, the principal subsidiary of CMSEnergy, is Michigan’s largest utility providing natural gas andelectricity to more than six million people.

The Federal Energy Regulatory Commission yesterday handedload-serving entities (mostly electric utilities) that serve theNew York City power market a present — a targeted rebate of $3.75per kilowatt month.