Relief

Utility companies were close to conceding defeat late last week in their effort to get an amendment attached to a congressional spending bill that would absolve them of prosecution under the clean-air lawsuits bought by the Justice Department on behalf of the Environmental Protection Agency (EPA) earlier this month (See NGI, Nov. 8).

Mitchell Energy & Development Corp. said the rebound inenergy prices raised its second quarter average gas pricerealizations 30% and pushed gas liquids price realizations up 25%compared to first quarter amounts. Combined with cost cutting gainsand other operating efficiencies implemented over the past year,Mitchell said the improvements should result in quarterly earnings(excluding oil and gas property sales) that will be three timesgreater than the First Call consensus estimate of 13 cents pershare.

Large commercial and industrial customers in Southern Californiashould experience further rate relief on their natural gas billsnext year, but the declines will be modest, according to aCalifornia Public Utilities Commission staff manager in charge oftwo pending rate cases for Southern California Gas Co., whichcontinues to keep a wary eye on new proposed interstate pipelinesthat would like to hook up directly to some of its largestcustomers.

Large commercial and industrial customers in Southern Californiashould experience further rate relief on their natural gas billsnext year, but the declines will be modest, according to aCalifornia Public Utilities Commission staff manager following twopending rate cases for Southern California Gas Co., which continuesto keep a wary eye on new proposed interstate pipelines that wouldlike to hook up directly to some of its largest customers.

Sen. Frank Murkowski (R-AK), chairman of the Senate Committee onEnergy and Natural Resources, consolidated several recentlegislative measures and a few new ones into two separate pieces oflegislation last week that could have a wide ranging impact on theexploration and production sector.

The storage-poor Pacific Northwest could get some needed reliefin the near future. Avista Corp. and PG&ampE GasTransmission-Northwest (PG&ampE GT-NW) have joined forces toinvestigate building another underground natural gas storagefacility in an aquifer in eastern Washington near theinterconnection of PG&ampE GT-NW and Williams (Northwest Pipeline)at Stanfield, OR.

The storage-poor Pacific Northwest could get some needed reliefin the near future. Avista Corp. and PG&E GasTransmission-Northwest (PG&E GT-NW) have joined forces toinvestigate building another underground natural gas storagefacility in an aquifer in eastern Washington near theinterconnection of PG&E GT-NW and Williams (NorthwestPipeline).

Virginia Power asked the State Corporation Commission Tuesdayfor authority to build and operate five natural gas-firedcombustion turbines to generate power for the utility’s two millioncustomers during peak demand periods.

After counseling from some of its board members, the CaliforniaIndependent System Operator (ISO) has decided not to seek relieffrom the Federal Energy Regulatory Commission for an unprecedentedprice spike it experienced July 9 for reserve power in California’srestructured electricity markets, according to an ISO spokesperson.