Soon

It doesn’t appear Louisiana is going to run out of power anytime soon. American Electric Power and Dow Chemical last weekannounced plans are going forward to construct a 900 MW naturalgas-fired cogeneration plant at Dow’s chemical complex inPlaquemine, LA, at the same time Calpine Corp. revealed it hasacquired the development rights from Cogentrix for the 500 MWWashington Parish Energy Center, located near Bogalusa.

In what has to be a wilder ride than anything available atDisneyland’s soon-to-open new “California Experience,” theelectricity high jinx caromed all over the nation’s most populousstate last week. It included: rolling blackouts through northernCalifornia; enactment of crisis legislation, the most immediate ofwhich provides $400 million to the state water resources agency soit can buy bulk power for California; a last minute temporaryrestraining order by the California Public Utilities Commissionrequiring Pacific Gas & Electric and Southern California Edisonto continue supplying power to all their customers; variousfinancial downgradings and defaults; and suggestions for compromiseactions by outgoing FERC Chairman James Hoecker.

A key ingredient in reformulated gasoline, methyl tertiary butyl ether, or MTBE, may soon be in short supply because of the rising price of natural gas. Friday, independent Valero Refining Corp. said it has cut its MTBE production 7,000 bbl/d from its only production plant because of the high costs.

In an indication that Mexico may be headed toward privatizingits monopoly-run energy industry, Mexican President-elect VicenteFox, who takes office Dec. 1 under a vow to make the governmentmore professional and less political, has asked for and obtainedthe resignation of a top official of the country’s regulatoryenergy commission.

Is the market in early meltdown stage? At least one traderthought so, saying, “Yep, it sure looks that way” after the screentacked on a second straight day of double-digit losses Wednesdayand was joined by the cash market recording price drops rangingbetween a dime and a little more than 20 cents.

“It looked like the screen and cash were in a race to see whichone could go downhill farthest and fastest.” A marketer’s commentaccurately summed up a day that more than ever indicated the bloomis quickly coming off this year’s price rose. Double-digit declinesdominated Thursday, with most exceeding 30 cents, and many GulfCoast and Midcontinent pipes experienced sub-$5 territory for thefirst time in months.

Enron’s interstate natural gas pipelines soon will beginoffering capacity on EnronOnline, a breakthrough transportationservice that has never been done before. With its TranswesternPipeline leading the way, Enron said last week the pipeline wouldbe the first to offer capacity for bidding through an open seasonon EnronOnline, its electronic transaction platform. Bidding willbegin next week.

Enron’s interstate natural gas pipelines soon will beginoffering capacity on EnronOnline, a breakthrough transportationservice that has never been done before. With its TranswesternPipeline leading the way, Enron said yesterday the pipeline wouldbe the first to offer capacity for bidding through an open seasonon EnronOnline, its electronic transaction platform. Bidding willbegin next week.

The GRI’s latest report indicates producers won’t run out ofwork anytime soon in the Western Canadian Sedimentary Basin (WCSB),which is estimated to have 166 Tcf in new pool potential and a 31.4Tcf reserve appreciation potential. Because of these positiveestimates, the GRI said the region could surpass 8 Tcf ofproduction by 2015.