Sempra

Late Friday, Sempra Energy’s San Diego Gas and Electric Co.(SDG&E) utility subsidiary filed with California stateregulators to increase one-time rate refunds to about $500 millionto take the bite out of summer electricity bills that have soaredfor its 1.1 million customers due to heat-induced power supply andprice spikes in May and June.

Faced with the possibility of loosing its electric marketinglicense in New Jersey because of seedy marketing maneuvers,Sempra’s Energy America cut a deal with the state’s Board of PublicUtilities last week, agreeing to halt its marketing efforts for athree-week span, retrain its agents and stop all “unconscionablemarketing tactics.”

Frontier Energy, a subsidiary of Sempra Energy, beganconstruction of a distribution system in Warren County, NC, wherefirst-time gas service is expected to play a significant role inthe county’s economic revitalization, the company said. The WarrenCounty pipeline is part of a $55 million distribution system beingbuilt by Frontier to serve residents and businesses in sevennorthwestern North Carolina counties.

Continuing a flurry of activity since its proposed merger withSempra Energy fell through (See related story), KN Energy was at itagain Friday as its marketing affiliate, KN Marketing, announced itwas selected to provide gas and fuel management services to a 600MW power plant in Elwood, IL. KN will supply 10 Bcf/year to thisplant at an undisclosed price. The Colorado-based company will alsomanage the plant’s fuel service, including supplying, balancing andmanaging storage and transportation.

FERC is scheduled to tackle two major cases today – “alternativemethods” for regulating pipeline facilities on the OuterContinental Shelf (OCS) and Granite State Gas Transmission’sapplication to build an LNG facility in the town of Wells, ME. Italso is expected to vote on the merger of Enova and PacificEnterprises.