Retail

The legislative architect of California’s 1996 precedent-settingelectric industry restructuring law Monday proposed a $2 billionreserve be carved out of the state’s next fiscal budget to fund astate effort to buy or build new generation plants. Theannouncement came at the same time the state energy commission,which approves all new power plants of 50 MW or larger, released alegislatively mandated report that concludes the state’s generationresources are adequate, and temporary peaking plants are not neededfor the upcoming summer.

Shell Energy will be selling gas to Georgia retail customersthrough Essential.com, according to a partnership the two companiesannounced yesterday. Essential.com already provides a one-stop shopfor a broad range of energy and communications services.

With focus shifting to natural gas prices and supplyavailability this fall and winter, a proposed conversion of the old16-inch-diameter Four Corners oil pipeline to natural gas has runinto a stalemate over a Southern California Gas Co. tariff thatallegedly inhibits the new pipeline from signing up industrialloads in the southern half of the state.

Two retail marketer bankruptcies in Georgia and the legislativeand regulatory retrenchment in California should take most of theblame for the slowdown in gas deregulation nationwide, according toMarie Lihn, principal economic analysis manager for the GasTechnology Institute (GTI) (see related stories this issue). Anationwide preoccupation with electric restructuring has not helpedthe gas cause either, she said in an interview regarding a new GTIstudy on gas deregulation.

Two retail marketer bankruptcies in Georgia and the legislativeand regulatory retrenchment in California should take most of theblame for the slowdown in gas deregulation nationwide, according toMarie Lihn, principal economic analysis manager for the GasTechnology Institute (GTI). A nationwide preoccupation withelectric restructuring has not helped the cause either, she said inan interview regarding a new GTI study on gas deregulation.

Energy America pulled off a last minute coup in last Wednesday’sauction for bankrupt Georgia retail marketer Titan Energy’s gascustomers by outbidding Shell Energy Services with a price of $2.5million for 50,000 gas buyers. Energy America paid $44/customer, adollar more than Shell, plus the $7 per customer switching fee.

Energy America pulled off a last minute coup in Wednesday’sauction for bankrupt Georgia retail marketer Titan Energy’s gascustomers by outbidding Shell Energy Services with a price of $2.5million for 50,000 gas buyers. Energy America paid $44/customer, adollar more than Shell, plus the $7 per customer switching fee.

One of the United Kingdom’s leading natural gas suppliers took ahuge step across the Big Pond last week, agreeing to purchase oneof Canada’s largest gas marketers. Centrica Plc will pay $612million in cash and assumed debt for Calgary’s Direct EnergyMarketing Ltd. and its associated marketer, Natural GasWholesalers.

“Clean” energy retail marketer GreenMountain.com cleaned houselast week, attracting a $100 million investment from BP Amoco andothers, striking a marketing and energy supply alliance with BPAmoco and forming a marketing arrangement with Web powerhouseLycos.