Response

California’s well documented difficulties related to electric restructuring and a sluggish response from consumers to retail electric competition in key parts of the country have not deterred most U.S. electric utilities from continuing to pursue competitive retail plans. Nor has it kept several states from moving forward with restructuring efforts, according to an industry analysis by Chartwell included in its new publication, Competition in the Energy Industry, 2001.

Is the colossal game of financial chicken that has been a major part of the response to California’s lingering energy crisis finally going to play out as the backdrop to the latest initiatives by the governor and his regulatory leaders?

In response to recent mild temperatures and tame storagewithdrawals, natural gas spot prices are expected to fall further,possibly as low as $5.50/MMBtu by the next reported index,according to analysts with UBS Warburg. The level is far below the$7.00 mark the firm predicted in January.

Perhaps partially in response to recent customer protests (seeDaily GPI, Dec. 19, 2000 and Jan. 2), Northwest lifted Wednesday itsrealignment and must-flow OFOs through the Kemmerer (WY) CompressorStation but said it reserves the right to re-impose both OFOs upon 24hours’ notice. The pipeline said it determined that ending the orderswas feasible “as a result of more favorable pricing conditions,reduced northbound volumes and increased southbound volumes” throughKemmerer. The must-flow OFO was implemented Nov. 16 (see Daily GPI, Nov. 16, 2000) and had its originalrequirement of up to 10% of contract demand flowing south throughKemmerer revised several times. The realignment OFO was issued Nov. 10(see Daily GPI, Nov. 13, 2000).

In response to Hunt Oil Co.’s unsolicited C$1.03 billion (US$710million) offer to buy Berkley Petroleum last week, Berkley announcedthat it has put together a special committee of independent members ofthe board to consider alternatives to the takeover offer itcategorized as “opportunistic and inadequate” (see Daily GPI, Dec. 29).

The IPAA’s Supply and Demand Committee said a rig and drilling workforce shortage is seriously hindering a supply response to soaring gas prices, and the problem is likely to continue in 2001.

The IPAA’s Supply and Demand Committee said a rig and drillingworkforce shortage is seriously hindering a supply response tosoaring gas prices, and the problem is likely to continue in 2001.

Detroit Edison reported that its unique bid-phased electricchoice program in Michigan continues to receive a positive responsefrom new participants using the system. The fifth and final bidphase of the program showed that demand for capacity on itsdistribution system again exceeded the amount of space available,as the company received over 70 requests.

Detroit Edison reported that its unique bid-phased electricchoice program in Michigan continues to receive a positive responsefrom new participants using the system. The fifth and final bidphase of the program showed that demand for capacity on itsdistribution system again exceeded the amount of space available,as the company received over 70 requests.