Service

Florida Power & Light announced that it has filed apreliminary action with the Florida Public Service Commission(FPSC) for permission to recover $518 million in excess expense dueto the “skyrocketing cost of oil and natural gas.”

Oklahoma Natural Gas Co. has been cleared by the OklahomaCorporation Commission of any wrongdoing regarding how it evaluatestransmission service bids for ONG customers, but the company thatfiled the original complaint — Enogex — is appealing thebidding process to the Oklahoma Supreme Court.

California’s once-dominant non-utility electric serviceprovider, Tustin, CA-based Commonwealth Energy, has turned backabout 18,000 commercial customer accounts to their incumbentutilities and is working on a fixed-price retail product to marketto San Diego Gas and Electric customers later this year.

PG&E Gas Transmission-Northwest removed the A unit atStation 12 (Bend, OR) from service due to a bleed valve failure.Capacity through the station was reduced to 1,890 MMcf/d Wednesday,affecting downstream deliveries. However, repairs were completedthe same day and capacity will return to 1,910 MMcf/d today.

Williams announced that the Internal Revenue Service has issueda favorable ruling on the company’s proposed tax free spin-off ofits communications business to Williams’ shareholders. The rulingwould permit a tax-free distribution of Williams Communications’stock to shareholders in what is commonly known as a spin-offtransaction. Under this form of transaction, each Williamsshareholder would get a proportionate number of WCG shares.Williams currently owns 85% of Williams Communications. It soldabout 15% of Williams Communications last October in public andprivate equity offerings. Last month the company’s board voted tobegin the separation process, which is expected to take about 18months. In a statement, CEO Keith Bailey said the company thoughtthe steps were “the best way to ensure that both our energy andcommunications businesses have the efficient and effective accessto the capital necessary to pursue the substantial growthopportunities that each enjoys.”

PNM, or Public Service Company of New Mexico, has asked stateregulators to accept a negotiated settlement raising rates 3.7% forresidential customers and 7% for larger customers and resolving ayears-long dispute that has wound its way through two regulatorycommissions and the state supreme court.

The Michigan Public Service Commission (MPSC) is in the processof expanding on a pilot program to provide all natural gascustomers in the state with the choice of suppliers. The MPSC staffis meeting with Michigan Consolidated Gas, Consumers Energy, SEMCOEnergy Gas and all other interested parties to formulate a uniformset of terms and conditions for natural gas customer choice.

Panda Energy International inked a firm electrical transmissionagreement with Arizona Public Service to supply power from itsproposed natural gas-fired 2,000 MW plant to be located in the townof Gila Bend. The proposed plant is before the Arizona CorporationCommittee for review. Senior vice president of merchant plantdevelopment for Panda, Garry Hubbard, said that the firm contractis “a critical step forward for the plant.” The new plant is onschedule to commence construction later this year, with start up 18months later, he added. Powering the plant will be eight GeneralElectric 7 FA natural gas turbines operating in combined cycle.

KeySpan filed an application with the New York State PublicService Commission to expand the generating capacity of itsRavenswood power plant in Long Island City by 250 MW. Whencompleted in 2003, the expanded power plant, which will beprimarily fueled by natural gas, will be the cleanest and mostefficient generating station in New York City. Today, Ravenswood isthe city’s largest power plant with a capacity of 2,168 MW, or 28%of the electric generation located in New York City. “New York Cityhas a critical need for electric power,” said Chairman Robert B.Catell. “An expanded Ravenswood power plant would help ensure thatthe city has adequate capacity to meet the ever-increasing demandfor electricity.” This year, New York City is 300 MW short ofmeeting its reliability requirement for in-city electric-generationcapacity, and the city’s demand for electricity continues to growat the rate of 150 MW per year, the company said.