Review

Clinton administration officials met with major and independentproducers at the White House yesterday and assured them that ahigh-level group would be established to examine the conditionsthat are contributing to the depressed state of the oil and gasindustry.

The Ohio-Pennsylvania Landowners Association (OPLA) has calledon the Senate Energy and Natural Resources Committee to commissiona General Accounting Office (GAO) study of the need for thecontroversial Independence Pipeline project.

Viking Gas Transmission’s proposed expansion of its existingsystem in Minnesota would have “no significant impact” onenvironmental conditions provided the pipeline follows certainmitigation measures during construction, according to a FERC staffenvironmental assessment (EA) released last week.

The consumer advocacy part of the California Public UtilitiesCommission is trying to get state regulators to second guesswinning bids on the final natural gas-fired power plants PacificGas and Electric Co. auctioned last year. The auction resulted inSouthern Company being awarded three winning bids for plants in theSan Francisco Bay Area totaling 3,065 MW and using up to 50 MMcf/dof gas.

Indiana regulators and FERC are weighing a potentiallygroundbreaking case that, in the end after court review, could give”complementary jurisdiction” to both states and the federalgovernment in instances where interstate pipelines are seeking tobypass local distribution companies (LDCs) in order to directlyserve end-use customers.

CalEnergy Co. and MidAmerican Energy Holdings Co. filed anapplication for review of proposal for reorganization with the IowaUtilities Board (IUB) in conjunction with their proposed merger.The merger agreement is also subject to approval by theshareholders of both companies, for which special meetings will becalled later this year. Completion of the merger is expected tooccur by the end of the first quarter of 1999.

California regulators have decided to review the potential fordistributed power generation as part of a series of three”roundtable workshops” on offshoots of the state’s electricindustry restructuring. The first roundtable will be held Aug. 3,1-4:30 p.m. at the California Public Utilities Commission’s SanFrancisco headquarters. Utility, trade association and consumerrepresentatives will participate.

California regulators have approved the $6.6 billion merger ofPacific Enterprises and Enova Corp., allowing the formation of acompany that will serve 21 million gas and electric consumers inSouthern California. But the merger partners did not get all theyrequested. The CPUC ruled merger savings of $174.9 million must bereturned to ratepayers and savings of $161.5 million returned toshareholders over the five years following completion of the mergerrather than over 10 years