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Although neither side indicated any wrongdoing, the energy trading affiliate of Shell Oil Co., Coral Energy Inc., agreed Wednesday to pay Ontario’s Independent Electricity Market Operator (IMO) US$1 million for conducting some cross-border electricity trades.

In response to simmering environmental concerns on the U.S. side of the Mexican border, California congressional members introduced legislation last week that would place fuel limitations and stringent environmental requirements on Mexican-based power plants that sell supplies across the border into the United States. The action was prompted by two power plants now under construction just south of Mexicali in North Baja.

A combination of above-market priced, long-term contracts and demand-side programs is the best formula for avoiding a return of high prices and power blackouts, the California Consumer Power and Conservation Financing Authority concluded at a recent board meeting in Sacramento. It is pointing the state toward achieving reserve levels of more than 20%, with ideally half coming from the demandside.

Natural gas futures took a long road to nowhere Thursday as prices moved to either side of the recent trading range on waves of local and commercial liquidation and short-covering.

Coming down firmly on the side of generators in California’s ongoing energy wars, FERC last Wednesday ordered the California Independent System Operator (Cal-ISO) to enforce the creditworthiness requirement of its open access tariff and previous orders issued by the Commission within 15 days. The Commission said that it was taking this step in order to ensure timely payment of Cal-ISO’s energy suppliers.

PPL Corp. was lighting the peace candle on the west side of its 22-story headquarters building in Allentown, PA, Thursday night and continuing through the weekend “as a symbol of the light that the American spirit can bring to even the darkest circumstances.” The commemorative gesture, and an accompanying donation, was just one of the many donations and supportive messages from energy companies in the wake of the terrorist attacks on the United States Sept. 11, 2001.

The energy industry remained in a high state of alert Tuesday evening and was still assessing the impact of terrorist attacks on the World Trade Center buildings in New York City, the Pentagon in Washington, DC, and in Somerset County, PA, near Pittsburgh. Trading on the New York Stock Exchange, the New York Mercantile Exchange (Nymex), and on the major over the counter energy e-commerce systems, including EnronOnline and IntercontinentalExchange, remained shut down or delayed indefinitely. No major energy outages or curtailments were reported other than those in close proximity to the terrorist attacks in New York City.

Highlighting TransAlta’s increased attention to the generation side of its business, the company last Thursday said that it has signed an agreement to sell its Alberta-based transmission business to a consortium of companies collectively known as AltaLink.

Highlighting TransAlta’s increased attention to the generation side of its business, the company yesterday said that it has signed an agreement to sell its Alberta-based transmission business to a consortium of companies collectively known as AltaLink.