Southern

Hydro Spin-Down May Threaten CA Power Projects

Bold plans by Southern California Edison and Pacific Gas andElectric Co. to transfer $2 billion in hydroelectric powergeneration assets to non-utility affiliates could threaten thecompetitiveness and profitability of the state’s emerging merchantpower business if allowed by state regulators. The proposals havesparked calls for a statewide investigation by the CaliforniaPublic Utilities Commission. Potential violations of market powerand utility affiliate transaction rules are being loudly raised bya growing number of opponents.

January 28, 1999

SoCalGas to Expand Online Retail Energy System

Attempting to reach energy consumers on both coasts, SouthernCalifornia Gas Co. said Thursday it hopes to offer its Internetmarketplace to customers in New York, Massachusetts, Illinois,Pennsylvania, and Georgia in the very near future. The expansionwas announced as part of the formal launching of power trading onthe company’s energy market web site, www.energymarketplace.com.

January 25, 1999

Briefs

California regulators have given the green light to continueindefinitely the three-year-old incentive gas buying program atSouthern California Gas Co., dispensing at year-end 1998 with anannual review of the program, which has even drawn praise from theusually critical Office of Ratepayer Advocates (ORA) at theCalifornia Public Utilities Commission. The program reportedly hassaved millions of dollars for SoCalGas’ smallest customers who relyon the utility to buy their supplies. In 1998, SoCalGas reportsearning a $2 million award for its shareholders for the latest12-month operations of its so-called “Gas Cost IncentiveMechanism.” Based on benchmarked market prices if SoCalGas can dosignificantly better than the market average, resulting inquantifiable savings for its merchant customers, part of thosesavings flow back to its shareholders, who in this case are ownersof the SoCal parent, Sempra Energy. Shareholders have earned $16million in rewards through the incentive gas-purchase program overthe past three years, according to SoCalGas.

January 18, 1999

Questar Tests Westward Expansion

Once again it’s ‘Westward Ho,’ as Questar Pipeline looks to beefup its southern mainline and connect with Williams West (Kern RiverGas Transmission) for deliveries to California.

December 30, 1998

CPUC’s Hands are Tied on Restructuring Issues

The California Public Utility Commission yesterday decided toleave Southern California Gas Co.’s interstate transportation ratesbundled, determining that a state law passed last summer preventsthe commission from taking any action on gas industry restructuringissues until the year 2000.

December 18, 1998

Transwestern Contemplates Expansion

With demand rising in southern California and its pipes too fullto do anything about it, Transwestern Pipeline Co. is holding anopen season through Dec. 18 to solicit shipper interest in apossible mainline expansion. The pipeline is exploring theconstruction of a compressor station near Gallup, NM, that willincrease mainline capacity to the California border by 140,000Dth/d. The cost of the expansion is estimated at $15-$20 million.

December 2, 1998

Questar Plans ARCO Line Extensions

Questar Pipeline said last week it plans to build severalextensions on the converted Southern Trails Pipeline (formerlyARCO’s Line 90) to provide greater access to San Juan Basin andRocky Mountain region supplies and to create a link to El Paso,Transwestern and others at the California border. The company alsois planning a short extension to several Long Beach, CA,refineries. Questar completed the $38 million purchase of the linefrom ARCO Pipe Line Co. last week.

November 30, 1998

Briefs

The Supreme Court last Tuesday rejected a petition for writ ofcertiorari filed by the California Public Utilities Commission(CPUC) and Southern California Gas (SoCalGas) after the partiesfailed to meet the deadline. The petitioners, which filed forreview on Nov. 5, missed the deadline by three days. The CPUC andSoCalGas had asked the high court to review a 1996 FERC decision -upheld by the D.C. Circuit Court of Appeals two years later – thatthey claimed amounted to a “power grab” of California’sjurisdiction by the federal agency.

November 16, 1998

High-Court Review Sought of FERC v. State’s Rights

The California Public Utilities Commission (CPUC) and SouthernCalifornia Gas (SoCalGas) petitioned the Supreme Court last week toreview the nettlesome issue of where does FERC’s jurisdiction endand the states’ jurisdiction begin.

November 9, 1998

High Court Review Sought of FERC v. State Rights

The California Public Utilities Commission (CPUC) and SouthernCalifornia Gas (SoCalGas) petitioned the Supreme Court last week toreview the nettlesome issue of where does FERC’s jurisdiction endand the states’ jurisdiction begin.

November 9, 1998