In the midst of an ever-widening series of battles facing merchant electricity generators during California’s energy crisis, the state’s small generator trade association Wednesday lauded the newly inked deal with Southern California Edison Co. and many of the state’s small qualifying facility (QF) generators as good for consumers and a means of “stabilizing” state wholesale power prices. A string of legal suits by both the utility and QFs has been suspended as a result.
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Duke CEO Sees Canada on Horizon
In the second of Duke Energy Corp.’s monthly chat series, Jim Donnell, CEO of Duke Energy North America, said Friday that DENA remains on track to complete 10 power facilities by 2002, with the 10th to be announced within the next month. On the horizon, however, Donnell said Duke sees opportunities for growth in Canada, naming Alberta and Ontario as two likely generation sites.
Duke CEO Sees Canada on Horizon
In the second of Duke Energy Corp.’s monthly chat series, Jim Donnell, CEO of Duke Energy North America, said Friday that DENA remains on track to complete 10 power facilities by 2002, with the 10th to be announced within the next month. On the horizon, however, Donnell said Duke sees opportunities for growth in Canada, naming Alberta and Ontario as two likely generation sites.
Transportation Notes
El Paso is conducting a series of maintenance operations in the San Juan Basin this month. Through Thursday, there will be a 450 MMcf/d reduction in San Juan supply availability due to producer maintenance. During those dates, EPNG will perform maintenance at downstream locations, to minimize the additional impacts. White Rock Station was down for annual DOT inspections June 4 and 5, reducing the capacity of the San Juan Basin by 230 MMcf/d (no added impact). Line 1300 on the San Juan Crossover is being shut in for piping modifications Monday through today with no flow from San Juan east for delivery to the South Mainline, Waha or Anadarko. Line 1212 between Valve 4 and Gallup Station is having pigging facilities installed today and tomorrow, reducing the capacity of the San Juan Basin by an additional 210 MMcf/d. On June 9, Line 1600 from Waha to Gresham Station will be smart pigged, reducing the capacity from Waha west by 500 MMcf/d (total flow of 250 MMcf/d). For the remainder of June, and continuing into July, a program of pigging facility installations, pipeline cleaning and smart pig inspections will occur on four sections of Line 1212 between Blanco and Gallup. The reduction of San Juan Basin capacity will vary, depending on the pipeline section and the phase of the work being performed. During these reductions, downstream maintenance will be done at Gallup, Window Rock and Williams Stations to minimize the overall impact on throughput. For more details see El Paso’s bulletin board.
Davis Files with FERC; Hits CA Munis High Prices
California Gov. Gray Davis late last week had the state add yet another series of formal appeals to an already long list of federal filings seeking wholesale power price relief, along with focusing his latest ire and jawboning on the state’s 30 municipal utilities. The Federal Energy Regulatory Commission filings keep the heat on prior to the governor’s anticipated meeting with President Bush Tuesday.
CA Regulators to Saddle Largest Users with 52% Rate Hikes
As a backdrop to the latest series of blackouts, California Gov. Gray Davis huddled Wednesday in Sacramento with large merchant generators while his chief utility regulator prepared for next week’s electric rate decision. The largest residential users and all businesses will carry the burden of retail price increases up to 52% for some customers. Both low-income and low-energy-consuming residential customers will be exempted for the rate increase.
Gas Industry, FERC Gripped by ‘Expansion Fever’
The natural gas industry and FERC have been afflicted with “Expansion Fever,” as last week saw a series of significant pipeline and storage expansions either announced or approved for the energy-hungry West and East Coast markets. Most noteworthy, if only for its sheer size, was Transcontinental Gas Pipe Line’s announcement of plans to expand its system from Louisiana to Virginia (Momentum Expansion project) in order to serve the ever-growing power generation load in the Southeast. This would be “one of the largest mainline expansion projects constructed in Transco’s 50-plus year history.”
Power Industry Faces Quality Vs Quantity Issues
Because the power system was not developed for today’s growing digital technology world, the industry faces a series of challenges to overcome its growing grid constraints. Without upgrades, “even with new power available, we won’t get it,” the strategic planner of the Electric Power Research Institute told a Houston energy audience last week.
FERC Should Expand CA-Specific Actions to Markets Nationwide
The series of actions taken by FERC last month to boost supply and encourage construction of electric and natural gas transmission facilities in California and the West in the short term are “bold” and should be implemented, but the Commission must consider expanding the scope of the actions to apply to wholesale power markets in other regions of the nation, said the Edison Electric Institute (EEI).
Power Industry Faces Quality Vs Quantity Issues
Because the power system was not developed for today’s growing digital technology world, the industry faces a series of challenges to overcome its growing grid constraints. Without upgrades, “even with new power available, we won’t get it,” the strategic planner of the Electric Power Research Institute told a Houston energy audience yesterday.