Spurred

Triple-digit temperatures throughout much of California inlandfrom the Pacific Coast spurred record energy demand, promptingstate and utility officials to call for voluntary cutbacks inelectricity usage on the eve of the Labor Day holiday weekend.Collectively, August turned out to be California’s hottest ever,further testing the reliability of the new power system in thestate.As Southern California Edison, San Diego Gas and Electricand the nation’s largest municipal utility, the City of Los AngelesDepartment of Water and Power, all registered record power demandMonday, a corresponding record for natural gas delivered toelectric generating plants was marked at Southern California Gas,which transports supplies to all three electric utilities. Gassupplies for power generation equaled 1.92 Bcf/d on Monday,surpassing a one-day record set Aug. 11, 1994 (1.877 Bcf), and aspokesperson for SoCalGas said with the prediction of more hotweather later in the week, “there is a chance we will surpass thenew record.”

Spurred by deregulation and the changing role of localdistribution companies, KeySpan Energy, parent of Brooklyn UnionGas, and Enron Capital & Trade Resources (ECT) made an allianceto market gas supply management services to LDCs throughout theNortheast.

Spurred on by LDC unbundling and subsequent decontracting,interstate gas pipelines are bracing for a brave new world thatcould portend significant changes in the way capacity is priced andin the types and range of services that will be offered tocustomers in the years ahead, pipeline executives said last week.