Split

The contentiousness and philosophical split among the five member California regulatory commission surfaced again Monday in a year-end business wrap-up meeting in which the more than year-old order for implementing a Southern California Gas Co. settlement leading to the restructuring of its markets has been effectively “nullified,” in the words of one of the state regulators.

The British Columbia government last Monday unveiled an ambitious energy plan under which BC Hydro will be restructured into two separate Crown corporations, one for generation and distribution, and the other for transmission.

Although its agenda has had few major energy items, the extreme delays that seem to surround many issues before the California Public Utility Commission (CPUC) in recent months have caused a new informal alliance of old and new members from different political parties. The newest and most controversial CPUC member, Michael Peevey, an economist, former utility senior executive and energy services multi-millionaire entrepreneur, has been unequivocal in chiding CPUC President Loretta Lynch for holding items too long for ostensible legal reasons or incomplete facts.

In a split decision for natural gas producers, the U.S. Court of Appeals for the District of Columbia Circuit has upheld the federal government’s right to include downstream marketing costs when computing royalties owed by individual producers. But, it said producers’ firm transportation demand charges for unused capacity were not subject to the same royalty consideration.

In what appears to be a split decision for natural gas producers, the U.S. Court of Appeals for the District of Columbia Circuit has upheld the federal government’s right to include downstream marketing costs when computing royalties owed by individual producers. But, it said producers’ firm transportation demand charges for unused capacity were not subject to the same royalty consideration.

Williams ended a rocky week Friday with two major credit ratings agencies split on how to evaluate its obligations to its spin-off, Williams Communications Group (WCG), and at least five class action lawsuits filed claiming it misrepresented those obligations. Late Friday Moody’s Investors Service confirmed the ratings of the parent company (WMB, Baa2 senior unsecured) and its subsidiaries. Moody’s also confirmed the Baa3 debt rating of Williams Communications Group (WCG) Note Trust, a third-party special purpose vehicle to which Williams has a contingent obligation. In addition Moody’s said the rating outlook for both entities are stable.

Interstate natural gas pipelines, electric utility transmission owners and local distribution companies believe FERC has gone over-board in its proposed rule that would completely wall off regulated transportation and transmission companies from their unregulated affiliates to stamp out market-power abuses, while shippers and consumers — who would benefit most from the stricter rule — think the Commission has struck the right balance.

Interstate natural gas pipelines, electric utility transmission owners and local distribution companies believe FERC has gone over-board in its proposed rule that would completely wall off the regulated transportation/transmission companies from their unregulated affiliates to prevent the exercise of market power, while shippers and consumers — who would benefit most from the stricter rule — think the Commission has struck the right balance.

In his much-awaited initial decision, FERC Chief Administrative Law Judge Curtis Wagner Jr. ruled Tuesday that El Paso Natural Gas engaged in “blatant collusion” by rigging the bidding process for a large block of transportation capacity on its system to favor its merchant-power affiliate. However, he recommended dismissal of the charge that El Paso Merchant Energy Co. illegally exercised market power to drive up prices for natural gas delivered to southern California beginning in mid-2000.