Revenue

Colorado could profit with up to $1.2 billion in revenue in the first year of a federal plan to allow natural gas drilling on the Roan Plateau, according to a study by an energy advocacy group.

The joint powers authority financing arm for public power in Southern California received an “AA-” credit rating for its $511.5 million revenue bonds to fund an aggressive long-term natural gas purchase program for five munis, including the Los Angeles Department of Water and Power (LADWP). Fitch Ratings gave the offering a stable outlook. Southern California Public Power Authority (SCPPA) will use the proceeds to acquire a 30-year natural gas supply from J. Aron & Co., including five nearly identical prepaid gas sales agreements with the SCPPA municipal utilities involved. The bonds are expected to be priced soon with Goldman Sachs as the sole manager, Fitch said. As the tax-exempt intermediary in the deal, SCPPA will sell the gas to the five electric munis at a price Fitch described as being equal to the first-of-the-month market index minus a fixed discount pursuant to nearly identical gas supply agreements with each project participant. “The price risk between the prepaid [fixed] price of natural gas paid by SCPPA to J. Aron at the bond closing and the index price that will be received by SCPPA from the project participants over the next 30 years will be hedged by a commodity swap between SCPPA and AIG-FP Broadgate, as described elsewhere,” Fitch said. “In addition, SCPPA will enter into an interest rate swap with J. Aron.

Alberta should raise oil and gas royalties on new and existing projects, increasing the province’s revenue 20%, according to a report by a government-appointed task force empaneled earlier this year to examine the province’s royalty and tax structure.

Alberta should raise oil and gas royalties on new and existing projects, increasing the province’s revenue 20%, according to a report by a government-appointed task force empaneled earlier this year to examine the province’s royalty and tax structure.

New Orleans-based independent McMoRan Exploration Co. last week said its natural gas volumes in the first quarter surged 78% to 3.85 Bcf. However, the producer’s revenue growth was offset by higher production costs, which weighed on profits.

Natural gas volumes in the first quarter surged 78% to 3.85 Bcf for New Orleans-based independent McMoRan Exploration Co. However, revenue growth was offset by higher production costs.

The federal government expects to receive more than $1 billion in revenue as a result of a royalty-in-kind (RIK) sale of natural gas conducted last month, according to Interior Department’s Minerals Management Service (MMS).

The federal government should receive more than $1 billion in revenue as a result of a royalty-in-kind (RIK) sale of natural gas conducted earlier this month, according to Interior Department’s Minerals Management Service (MMS).

Avista last week received approval from the Washington Utilities and Transportation Commission (WUTC) to implement a natural gas revenue decoupling mechanism. The Spokane, WA-based utility said the new rate mechanism will allow it to increase promotion of energy efficiency programs and services to its 140,000 Washington natural gas customers.