Saving

California Gov. Arnold Schwarzenegger kept pushing energy-saving messages for this summer in his weekly statewide radio address last weekend, but other news media picked up belatedly on the governor’s comments about liquefied natural gas (LNG) terminal siting in the state that he made in response to media questions last Thursday (see Daily GPI, June 24). The governor’s press office stressed that Schwarzenegger is waiting for the regulatory processes to be completed regarding both proposed onshore and offshore LNG terminals.

All of the major global liquefied natural gas (LNG) shippers — mostly large oil and gas production companies — are now “more comfortable” with the longer term wholesale natural gas business in the United States and willing to take the risk of downstream prices once added LNG imports begin flowing in 2007-08, according to San Diego-based Sempra Energy CEO Steve Baum, speaking Tuesday at the Deutsche Bank Electric Power Conference in New York City.

All of the major global liquefied natural gas (LNG) shippers — mostly large oil and gas production companies — are now “more comfortable” with the longer term wholesale natural gas business in the United States and willing to take the risk of downstream prices once added LNG imports begin flowing in 2007-08, according to San Diego-based Sempra Energy CEO Steve Baum, speaking Tuesday at the Deutsche Bank Electric Power Conference in New York City.

As the initiators of a cost-saving regulatory-based financing step for one of the state’s largest and most contentious utilities, California’s regulators who supported a controversial settlement last year Tuesday cheered on state elected officials for producing a law that will allow formerly bankrupt Pacific Gas and Electric Co. to continue with its final steps to full recovery.

While consumer issues have already turned up the regulatory heat, proposed legislation promises to light a fire under Colorado’s major utilities, requiring them to step up energy savings and conservation programs. Included in early versions of a bill backed by a mixture of environmental and energy efficiency groups is a requirement to reduce the average retail utility customer’s energy use by 0.5% annually for the next 15 years.

Houston-area residents served by Reliant Energy Entex will see a 22% reduction in natural gas bills beginning in February, saving customers about $90 million on an annual basis. The reduction follows one last August when the company announced a 19% reduction to save about $100 million on an annual basis. A typical bill for 100 cubic feet that was $83.27 now will be $65.17, reflecting fluctuations in fuel prices. “The price we pay to purchase natural gas has continued to drop in the last several months, and these lower wholesale prices reduce the cost of delivering natural gas,” said Tom Standish, president of Reliant Energy HL&P/Entex.

Houston-area residents served by Reliant Energy Entex will see a 22% reduction in natural gas bills beginning in February, saving customers about $90 million on an annual basis. The reduction follows one last August when the company announced a 19% reduction to save about $100 million on an annual basis. A typical bill for 100 cubic feet that was $83.27 now will be $65.17, reflecting fluctuations in fuel prices. “The price we pay to purchase natural gas has continued to drop in the last several months, and these lower wholesale prices reduce the cost of delivering natural gas,” said Tom Standish, president of Reliant Energy HL&P/Entex.

For now, California and other parts of the nation can thank Mother Nature for saving consumers from severe and sustained summer energy price spikes, and perhaps bolstering the political resolve to keep pushing ahead with market-based energy solutions, said a Wall Street analyst with Commerzbank Securities. However, the market fundamentals are still present to sustain higher-than-historic prices and volatility, particularly for natural gas.

For now, California and other parts of the nation can thank Mother Nature for saving consumers from severe and sustained summer energy price spikes, and perhaps bolstering the political resolve to keep pushing ahead with market-based energy solutions, said a Wall Street analyst with Commerzbank Securities. However, the market fundamentals are still present to sustain higher-than-historic prices and volatility, particularly for natural gas.