Shape

The power delivery system in Texas is in “excellent” shape compared with other states, but that said, reducing transmission constraints remains key to continued reliability, according to the latest study by the state’s grid operator, the Electricity Reliability Council of Texas (ERCOT). As ERCOT noted, most of the additional transmission facilities it expects to need in the next few years would be required whether or not the state had chosen to deregulate its electricity market because of growth in major regions, as well as strong demand.

While California regulators drew more attention for what they didn’t do at Thursday’s twice-a-month business meeting, the increasingly split five-member panel did approve a multi-billion-dollar set of energy efficiency programs for local government and community groups statewide as well as a crucial service agreement between Pacific Gas and Electric Co. and the state power-buying agency. However, the verbal jabs commanded more attention.

California’s newly created state power authority began last week to shape the state’s legislatively mandated return to “integrated resource planning,” the process — pre-dating energy restructuring — of central state planning of the needed mix among fuels for electricity generation, renewables and demand-side management and responsiveness programs. The process sets aside the notion that markets will sort out the right mixture, giving that role to state government.

California’s newly created state power authority began this week to shape the state’s legislatively mandated return to “integrated resource planning,” the process — pre-dating energy restructuring — of central state planning of the needed mix among fuels for electricity generation, renewables and demand-side management and responsiveness programs. The process sets aside the notion that markets will sort out the right mixture, giving that role to state government.

Even though the oil and gas industry is preparing for the “backside of the cycle” as natural gas prices fall, companies are in a better position today than in 1998, when financially constrained producers were forced to limit capital spending and drilling activity to service their debt, according to Raymond James Energy’s Stat of the Week. Analyst Wayne Andrews said, “this time around, producers have worked to maintain financial flexibility through the peak and appear to be in a much better position to handle the potential weakness in commodity prices.”

Even though the oil and gas industry is preparing for the “backside of the cycle” as natural gas prices fall, companies are in a better position today than in 1998, when financially constrained producers were forced to limit capital spending and drilling activity to service their debt, according to Raymond James Energy’s Stat of the Week. Analyst Wayne Andrews said, “this time around, producers have worked to maintain financial flexibility through the peak and appear to be in a much better position to handle the potential weakness in commodity prices.”

The shape of Dynegy changed significantly last week with thecompletion of the company’s merger with Illinova and the unloadingof some major Midcontinent gathering and processing assets