Sector

For the first time, both of the state’s major private-sector utilities, Edison International and Pacific Gas and Electric Co., made the California Common Cause list of Top 10 contributors to state political campaigns for 1999-2000, ranking sixth and seventh respectively, each contributing more than $1 million.

California’s second largest private-sector utility, Southern California Edison Co., on Friday obtained $1.8 billion in secured financing and along with cash on hand that had been steadily increasing since the mid-part of last year paid off all of the past-due part of its outstanding $5.5 billion to its creditors. The utility detailed the transaction in an 8-K filing with the Securities and Exchange Commission.

While Wall Street was kicking the natural gas and electric sector in the teeth, the Federal Energy Regulatory Commission played Santa Claus last week and gave most of the regulated energy companies — with the exception of El Paso Corp. — exactly what they wanted for Christmas.

To promote private sector involvement, especially in the energy and supply sectors, Canadian Natural Resources Minister Ralph Goodale begins the second trade mission to Mexico City through Wednesday, joined in the four-day trip by executives from about 25 energy companies across Canada.

While exports to the United States drive the expanding natural gas sector on Canada’s East Coast, it remains unclear whether there will be a domestic distribution grid in Nova Scotia. The Nova Scotia utility commission has set a deadline of Jan. 14, 2002, to receive applications for a second run at building a gas distribution system in the province. A hearing has been called for Nov. 19 on issues raised by the withdrawal of Sempra Atlantic Gas from the project, including what to do with C$50 million (US$30 million) in installations that the company was able to construct in the Halifax-Dartmouth area.

Alleging there is evidence that its customers would be overcharged by more than $1.4 billion, Pacific Gas and Electric Co. filed a suit last Tuesday in a state Superior Court in Sacramento asking that the state’s power-buying agency, the Department of Water Resources (DWR), be forced to hold a public hearing to determine if its estimated $13 billion in power purchases are accurate.

Energy Secretary Spencer Abraham has come under attack from the energy sector for stating last week that the United States is “well on our way toward a dangerous dependency” on natural gas.

Energy Secretary Spencer Abraham has come under attack from the energy sector for stating this week that the United States is “well on our way toward a dangerous dependency” on natural gas.

State legislators debated a “cash infusion” for the financiallytroubled private-sector utilities yesterday in exchange for statetakeover of their transmission and generation assets. AndCalifornia Gov. Gray Davis on Wednesday highlighted a package ofproposed bills to provide $120 million in cash incentives and a 50%tax break to renewable energy and distributed generation developersas a means of fulfilling his promise to add 20,000 MW over the nextthree years.