Settlements

The Public Utilities Commission of Ohio (PUCO) moved the state further toward retail deregulation this week, approving settlements with Dominion East Ohio Gas and Columbia Gas of Ohio that would allow the local distribution companies (LDC) to gradually move out of the merchant function starting with nonresidential customers.

In the small high desert community of Hinkley, CA, about 130 miles northeast of Los Angeles, which inspired multi-million dollar utility settlements and a major motion picture, residents and the local board for state water regulators are expressing concerns about Pacific Gas and Electric Co.’s (PG&E) handling of ongoing toxic mitigation work.

After years of regulatory processing and stakeholder settlements, California regulators last week unanimously established “firm access rights” (FAR) for wholesale natural gas customers on the Sempra Energy utilities’ gas transmission and storage system. It was recognized that stakeholders see the new system as far from perfect, and the utility was directed to take steps to fine tune the program before it becomes fully implemented in 2008.

After years of regulatory processing and stakeholder settlements, California regulators Thursday unanimously established “firm access rights” (FAR) for wholesale natural gas customers on the Sempra Energy utilities’ gas transmission and storage system. It was recognized that stakeholders see the new system as far from perfect, and the utility was directed to take steps to fine tune the program before it becomes fully implemented in 2008.

Enron Corp. on Friday announced it had reached a $144 million settlement with Barclays in its so-called “MegaClaims” litigation. Enron’s settlements with eight financial institutions now total $928 million.

Bringing the tally to four days of consecutively higher settlements, November natural gas futures Wednesday soared during the session to put in a $6.180 high before slipping lower to close at $5.995, up 23.6 cents on the day. One broker attributed the move to a combination of Indian summer-like temperatures in the East and a bounce off of significant support late last week.

Outgoing Sempra Energy CEO Steve Baum said he expects to have the bulk of the energy crisis-spawned litigation facing the company resolved in settlements by the time he retires in January next year.

Separate draft orders were released by FERC last Wednesday approving settlement agreements between FERC staff and Duke Energy Trading and Marketing (DETM) and the Modesto Irrigation District resolving previous allegations of gaming activities on the part of DETM and MID during the California energy crisis of 2000-2001.

Royal Dutch/Shell Group has agreed to pay a total of $151 million in final settlements with the U.S. Securities and Exchange Commission (SEC) and UK regulators for its overstatement of proven oil and natural gas reserves during a five-year period.