Showdown

As gasoline prices flirt with the $4/gallon level, the Senate majority is preparing a showdown with Republicans over rescinding major producers’ oil and natural gas subsidies.

A deal signed late Monday by 14 centrist senators to avert a showdown over judicial nominees “bodes positively” for the chances for energy legislation in the Senate next month, said energy analyst Christine Tezak. She believes the outlook for energy legislation in Congress this year would be particularly good if the cooperative spirit continues.

Setting up a possible showdown with states over how and when electric utilities should join regional transmission organizations (RTOs), FERC late Tuesday said that American Electric Power Co. (AEP) must “expeditiously fulfill” prior voluntary commitments and hand over control of its transmission facilities to PJM Interconnection. Significantly, the Commission also said that after considering various alternatives, AEP’s full integration into PJM is the best solution among the options before the federal agency.

Tropical Storm Claudette appeared to be strengthening as it moved north, but its landfall location was still uncertain at press time Monday, with forecasts ranging from the Coastal Plains of Texas southwest of Houston to the eastern Gulf and Louisiana. The storm has caused many oil and natural gas companies to evacuate their platforms, shut down pipes and cease production (see Daily GPI, July 14).

Senate Republicans last Thursday made good on their pledge to file most of the House comprehensive energy bill, H.R. 4, as an amendment to a pending railroad pension benefits measure, setting the stage for a potential floor fight over energy this week in the upper chamber.

Senate Republicans last Thursday made good on their pledge to file most of the House comprehensive energy bill, H.R. 4, as an amendment to a pending railroad pension benefits measure, setting the stage for a potential floor fight over energy this week in the upper chamber.

Top FERC officials will meet in a closed-door session today todiscuss the results of its investigation into whether Kinder MorganInterstate Gas Transmission has properly implemented theCommission-ordered operational restructuring in compliance with themarketing-affiliate standards of Order 497.

A showdown that was brewing between FERC and New Jersey Gov.Christine Todd Whitman over the hotly contested MarketLinkexpansion was suddenly aborted on Friday when Chairman JamesHoecker pulled the project from the agenda for Tuesday’spre-Thanksgiving meeting.

A rate hike proposal of Northern Natural Gas that has thepotential to cause a showdown at FERC over key policy issues got acool reception last week from Midwest municipals and smalldistributors on Northern’s system.