The Federal Energy Regulatory Commission signaled a key shift in its policy on negotiated transactions Tuesday, saying now it will require pipelines negotiating individual deals that include “material deviations” from their form of service agreements to offer the service to other similarly situated shippers on their systems.
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Wood Signals El Paso’s FR Contracts Are High on Agenda
FERC last week denied rehearing of a June order that permits Arizona Public Service Co. to assign its full-requirements (FR) capacity contract on El Paso Natural Gas to affiliate Pinnacle West Energy to serve a new gas-fired generation facility that it is building in Arizona. On the surface, it seemed a clear victory for the companies involved. However, Chairman Pat Wood made it very clear that he has concerns about FR service on El Paso, which entitles customers to unlimited capacity at frozen rates, and that he plans to take up the issue at a later date.
Wood Signals That El Paso’s FR Contracts Are High on Agenda
FERC denied rehearing of a June order that permits Arizona Public Service Co. to assign its full-requirements (FR) capacity contract on El Paso Natural Gas to affiliate Pinnacle West Energy to serve a new gas-fired generation facility that it is building in Arizona. On the surface, it seemed a clear victory for the companies involved. However, Chairman Pat Wood made it very clear that he has concerns about FR service on El Paso, which entitles customers to unlimited capacity at frozen rates, and that he plans to take up the issue at a later date.
Hebert Signals Intent to Leave FERC; Madden Departs
Ending months of speculation, FERC Chairman Curt Hebert Jr. has informed the White House that he will step down from the Commission at the end of August. At the same time FERC General Counsel Kevin Madden, who has long had a hand in directing Commission activities, will also leave to take a position with AGL Resources in Atlanta.
Hebert Signals Intent to Leave FERC
Ending months of speculation, FERC Chairman Curt Hebert Jr. informed the White House late last week that he will step down from the Commission at the end of August.
FERC’s Wood Signals Concern about Offshore Gathering
FERC Commissioner Pat Wood III said last week that while he doesn’t advocate asking Congress to restore the agency’s authority to regulate gathering, he is concerned about problems that offshore producers may be facing in a de-regulated market.
Bears Back in Control as Futures Close Below $4.00
With little in the way of fresh fundamental signals from which to take a cue, natural gas futures took the path of least resistance lower Friday as traders pressured the market back below key support at $4.00. The July contract led the way, tumbling 5.9 cents to close at $3.979, just a tick off its $3.98 opening trade for the week. Estimated volume was extremely light, with just 39,677 contracts changing hands.
Study Urges ISO New England to Monitor Generators
A new study urges ISO New England Inc. to continuously monitor generator unit availability to price and demand in order to ensure adequate market signals are in place to encourage sufficient generator availability during peak load periods. The same study, unveiled last Friday, also recommends that the ISO devote future monitoring efforts to the performance of new combined-cycle units, some of which have experienced poor availability.
Muddled Technical and Fundamental Signals Keep Traders Guessing
Bulls saved their best for last on Friday. After being held to an extremely-tight, 7-cent trading range throughout much of the session, natural gas futures shot high during the closing 75 minutes of trading in concert with a spike in the nearby crude oil pit. At the closing bell, June natural gas futures were up a modest 4.3 cents or 1% at $4.291. Comparatively, June crude was up an even dollar or a little over 3% at $29.91.
Knowles Signals Will Sign Bill Opposing MacKenzie Delta Line
Alaska Gov. Tony Knowles is expected to sign legislation this week that would block the construction of a long-line natural gas pipeline from the North Slope region across the Beaufort Sea to Canada’s MacKenzie Delta, a move that assuredly will not sit well with producers. The governor’s office signaled Knowles’ intent last week after the legislation, SB 164, overwhelming passed both the Senate and the House.