Smooth

If the Energy Information Agency (EIA) was envisioning a smoothroad ahead when it filed for an emergency approval from the Officeof Management and Budget for a new energy survey in the Northeast,the agency is in for a rude awakening.

If the Energy Information Agency (EIA) was envisioning a smoothroad ahead when it filed for an emergency approval from the Officeof Management and Budget for a new energy survey in the Northeast,the agency is in for a rude awakening.

With 5,900 MW of new mostly gas-fired generation capacity comingonline this winter across the United States, the North AmericanElectric Reliability Council concluded in its latest WinterAssessment that “electric resources will be adequate” to meetprojected electricity demand.

With 5,900 MW of new mostly gas-fired generation capacity comingonline this winter across the United States, the North AmericanElectric Reliability Council concluded in its latest WinterAssessment that “electric resources will be adequate” to meetprojected electricity demand.

The electric industry is traveling down the highway ofrestructuring like a car whose every cylinder is misfiring. Thatmay sound pessimistic to some, but at least one industry watchersees much unevenness in how generation, transmission andlegislation are evolving and predicts a lot of uncertainty down theroad.

In an effort to smooth the way for FERC approval of its mergerwith MidAmerican, CalEnergy sold a 50% stake in power generationsubsidiary CE Generation LLC to El Paso Energy last week for $259.6million, including $236.1 million in cash and $23.5 million in debtand other payments. CE Generation is the holding company for 14U.S. power plants with capacity to produce 896 MW of electricity.

California regulators have taken steps to smooth the way for thestate’s first merchant underground natural gas storage field, thefirst wells for which are being drilled beginning this week about50 miles north of Sacramento in a depleted dry gas field in ruralnorthern California.

As expected following the landmark gas accord in Canada in thefirst week of April, it has been smooth sailing for the merger ofTransCanada and Nova Corp. The Alberta Energy and Utilities Boardgave its blessing to the deal this week. And the companies said theCanadian Competition Bureau has completed its review of thetransaction without requesting alterations.