The Federal Energy Regulatory Commission yesterday significantlyraised the bar for interstate pipelines seeking to construct newprojects by requiring that the proposed facilities be able to standon their own financially.
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El Paso Buys Into Enron’s NJ Power
Attempting to meet steep generation acquisition goals set by itsCEO for 1999, El Paso Energy recently bought a 49% ownershipinterest in East Coast Power, a subsidiary of Enron Corp. Terms ofthe deal were not disclosed. Enron still maintains control of thecompany with its 51% interest. El Paso said this deal is the firstdomestic power alliance between the two companies.
Statoil Hedging for Producers, End-Users
Resistance to hedging has declined significantly amongindependent producers. But now that they’re hedging, some companiesare doing the wrong thing at the wrong time, according toexecutives at Statoil Energy.
Electric Load Pushes Cash Market Significantly Higher
Increases of more than a dime were the norm Monday as 80-90degree temperatures throughout the eastern half of the country andthe ensuing electric generation load caused gas prices at allpoints to rise substantially. New York Citygate led the way withprices increasing from the low $2.50s on Friday to the mid $2.70syesterday. The need for Northeast electric generation was socritical yesterday that the New England ISO issued a “powerwarning” and asked consumers to voluntarily curb power use.
Tennessee Files Tiny Eastern Express Project
Tennessee Gas Pipeline filed a significantly scaled-down versionof its Eastern Express Project 2000 last week, reporting thateastern markets have been slow to develop and many New Englandpower generators believe it would be premature to sign long-termcontracts for firm gas transportation. The pipeline’s applicationwith FERC calls for the addition of only 168 MMcf/d of capacityalong the northernmost part of its system at a connection with theJoint Facilities of the PNGTS and Maritimes & Northeastpipelines.
FERC Auction Could Hurt Gas in Power Market
Implementation of a mandated capacity auction, as proposed byFERC in its mega-notice of proposed rulemaking (NOPR), couldsignificantly thwart the opportunity for natural gas to gain agreater share of the prized electricity market in the future.
Sempra Inks Optimization Deal with Connecticut Gas
Significantly increasing its presence in the Northeast, SempraEnergy’s marketing arm, Sempra Energy Trading, agreed Thursday tomanage the supply and delivery of gas to serve Southern ConnecticutGas Co.’s 158,000 customers. Terms of the one-year agreement werenot disclosed. Sempra will begin April 1.
Market Still on Upswing But Slowing Down
The surge that has characterized cash trading activity this weekcontinued Wednesday but at a significantly slower pace, suggestingto some that prices had reached or were nearing peaks. The newupticks left most eastern points in the vicinity of October indexlevels, while markets in the West padded their already considerablestandings above indexes.
PacifiCorp Expects Earnings Shortfall
PacifiCorp said yesterday it expects its third quarter earningswill be 50% below securities analysts’ expectations of $0.41/shareand its annual earnings will be significantly below analysts’forecast of $1.27 per share.
Study: Bulk Power Market Grew 15% Last Year
Bulk power transactions in 1997 increased significantly over1996 levels, pointing to the continued emergence of a competitivewholesale power market, according to Metzler Services’ 1997operating data and statistics for the electric utility industry.