For an industry that’s been nearly litigated to death, some relief may be on the way in the form of new standardized contracts designed to lower risk, grease the gears of energy trading and sharply reduce collateral requirements in this time of extreme credit scrutiny.
Relief
Articles from Relief
Coast Guard Lifts Ban on LNG Shipments in Boston Harbor
The New England natural gas market breathed a sigh of relief last week when the U.S. Coast Guard lifted its ban on liquefied natural gas (LNG) tankers into Boston Harbor, clearing the way for Distrigas of Massachusetts LLC to receive overseas’ shipments once again at its Everett, MA, terminal.
B-rrrrrr! California Feels the Cold Snap
The weekend is expected to give some relief to California’s “cold snap,” although by normal Midwest or Eastern standards, the daytime temperatures in the 50s and 60s are downright balmy, but by the standards of this state — even in winter — it’s been downright freezing in the nighttime and morning hours, pushing natural gas consumption to near-record levels from San Diego to the Oregon border.
B-rrrrrr! Even California Feels the Cold Snap
The weekend was expected to give some relief to California’s cold snap, although by Midwest or Eastern standards, the daytime temperatures in the 50s and 60s are downright balmy. By the standards of California — even in winter — its been downright freezing in the night time and morning hours, pushing natural gas consumption to near-record levels from San Diego to the Oregon border.
No Relief in Sight for Futures Bulls Caught in Terrible Twos
After spending the first two weeks of July in a mini uptrend, natural gas futures broke beneath major support last week, as traders continued to factor in the blistering pace of storage refills and normal- to below-normal temperatures. The August contract was hit with heavy selling Monday, and then again Wednesday through Thursday, pressuring prices to new 14-month lows and dashing bulls’ hopes that a bottom had been achieved. August moved mostly sideways on Friday to close at $2.955, up a modest 1.6-cent for the day but down a whopping 29.5 for the week.
California Agrees to Buy SDG&E’s Wires
Conceding that federal regulators belatedly have taken steps to offer wholesale power price relief, California Gov. Gray Davis last week announced an agreement with Sempra Energy’s San Diego Gas and Electric Co. that wipes out a $740 million debt the utility was facing for uncovered wholesale electricity costs. The state will buy SDG&E’s transmission lines for just under $1 billion, or 2.3 times book value, and commit to provide all of its native generation to the state on a cost-based, below-market basis.
No Relief in Sight for Weary Bulls
Bulls and bears took turns yesterday in the gas pit at Nymex as light buying pressure throughout the morning morphed subtly into selling interest in the afternoon. As a result, prices did not stray very far from center with most months able to eke out minimal advances for the session. The July contract finished at $3.747, which was 1.3 cents higher on the day.
CA in Deal to Buy SDG&E Wires
Conceding that federal regulators belatedly have taken steps to offer wholesale power price relief, California Gov. Gray Davis Monday announced an agreement with Sempra Energy’s San Diego Gas and Electric Co. that wipes out a $740 million debt the utility was facing for uncovered wholesale electricity costs. The state will buy SDG&E’s transmission lines for just under $1 billion, or 2.3 times book value, and commit to provide all of its native generation to the state on a cost-based, below-market basis.
Senate Dems to Press FERC on CA Price Relief
On the same day that he was handed the reins of the Senate Energy and Natural Resources Committee, Senator Jeff Bingaman (D-NM) said that bipartisan legislation directing FERC to set cost-based rates to ensure just and reasonable wholesale energy prices in California could get consideration from the panel within the next couple of weeks. Separately, newly-minted Senate Majority Leader Tom Daschle (D-SD) made it clear earlier this week that he stands ready to support such legislation if FERC falls short of meeting its just and reasonable obligations.
House Republicans Drop CA Emergency Bill
House Republican energy leaders have deep-sixed their proposed legislation to provide emergency relief to California and other western energy markets, insisting that Democrats and Republicans are too far apart on the issue of whether price limits on wholesale power should be included.