Ruling

FERC last week put off a final ruling on the troubled merger ofAllegheny Energy and DQE Inc., parent of Duquesne Light, until thepartners decide how they want to resolve some serious competitiveconcerns. The Commission gave them the option of divesting DQE’s570-MW Cheswick Generating Station or proceeding to hearing ontheir own mitigation measures, which include relinquishing controlof the Cheswick output on a short-term basis and joining theMidwest independent system operator (ISO).

A FERC majority yesterday reaffirmed the right of interstatepipelines to “reasonably withhold” their consent for customers topermanently transfer their contract liabilities to third-partyreplacement shippers under capacity releases.

Chevron says it will appeal a recent preliminary ruling by theState of Florida against its development of the Destin Dome 56Unit, about 25 miles offshore from Pensacola, FL.