Consumers scream when their gas bills spike, and the typical utility response is to say that commodity costs are just a pass-through; the utility doesn’t make any money on the gas it delivers. That’s true, but it doesn’t mean utilities don’t feel the pinch of higher gas prices, too.
Articles from Scream
Consumers scream when their gas bills spike, and the typical utility response is to say that commodity costs are just a pass-through; the utility doesn’t make any money on the gas it delivers. True, but…
Severely depressed basis spreads in the Rocky Mountain region “scream the message of shut-in gas,” yet very few pipeline expansions have been put in place to solve the problem, noted energy consultant Mary Menino of Energy Security Analysis Inc. She predicts that export constraints will continue to plague the Rockies market as long as power generators and producers are unwilling or unable to sign firm agreements for pipeline transportation capacity on expansion projects.
Southern California border prices pushed well beyond $7 Tuesday,while PG&E citygates and Malin appeared to be in a catch-uprace with huge upticks of nearly a dollar at both NorthernCalifornia points. However, the big news that El Paso had gottenfederal approval to resume reduced service on its South Mainline’sLine 1110 did not come until late in the afternoon (see relatedstory in this issue).