The names — “Fat Boy,” “Death Star” — may sound ominous, but the strategies they represent actually served to arbitrage the California market, lending it equilibrium and efficiency, according to an economist with the global consulting firm NERA (National Economic Research Associates) in a paper released earlier this month.
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Michigan Sees 6.7% Jump in 2002 Demand Served Mainly by Stored Gas
Assumed normal weather for next winter and the addition of another 2,400 MW of gas-fired power generation this summer on top of the 1,000 MW last summer should lead to a 6.7% increase in gas deliveries in Michigan this year, the Michigan Department of Consumer & Industry Services said in its semiannual energy appraisal. The department said it expects 905 Bcf of gas deliveries this year.
Industry Briefs
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.
Industry Briefs
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.
Laclede Expects 35% Customer Rate Cut This Winter
Based on normal weather, natural gas customers served by St. Louis-based Laclede Gas will see a 35% reduction in their winter heating bills, the company estimates. Laclede, with an estimated 633,000 customers in St. Louis and eastern Missouri, bases its cost estimates on the recent wholesale price projections for the winter period from November through March 2002.
People
Portland, OR-based Northwest Natural Gas Co. has appointed Mark S. Dodson as the company’s president and COO. Dodson, 56, had served as NW Natural’s senior vice president of public affairs and general counsel since 1997. In his new position, he will have responsibility for all day-to-day operations of the company and report directly to CEO Richard G. Reiten. Dodson was a partner in the law firm of Ater Wynne Hewitt Dodson & Skerrit in Portland from 1980 to 1997. He also has worked in the general counsel’s office of the U.S. Department of Transportation and was a special counsel to the Federal Aviation Administration in Washington, D.C.
PUCO Approves Southeastern Emergency Rate Increase
The Public Utilities Commission of Ohio (PUCO) has approved an emergency rate increase for former customers of Paramount Natural Gas Co. who are now served by Southeastern Natural Gas Co. Under the terms of the ruling, a typical customer currently paying $76.52 will see his bill increase to $81.74 for 8 Mcf per month.
PUCO Approves Southeastern Rate Increase
The Public Utilities Commission of Ohio (PUCO) has approved anemergency rate increase for former customers of Paramount NaturalGas Co. who are now served by Southeastern Natural Gas Co. Underthe terms of the ruling, a typical customer currently paying $76.52will see his bill increase to $81.74 for 8 Mcf per month.
People
PowerTrust.com announced the appointment of Susannah Robinson asthe company’s COO. Robinson comes from Titan Energy, where sheserved as acting president and member of the board since 1997.While with Titan, she helped to build its natural gas and electriccustomer base from zero to 200,000. Prior to working for Titan,Robinson worked in regulatory and governmental affairs for Enron.
Shippers Challenge El Paso Project
In light of expanding markets being served by El Paso NaturalGas’ South Mainline, East-of-California (EOC) shippers haveexpressed concern with the pipeline’s “Line 2000 Project” in whichit seeks to abandon six aging compressor facilities and replacethem with nearly 785 miles of converted line that would loop muchof its southern leg. The rub is that the proposed project,essentially a one-for-one swap, is not expected to create any newcapacity, yet El Paso is looking for its shippers to foot the tab.