Northwest notified shippers of a Declared Stage I OverrunEntitlement Period (Overrun Entitlement) that began Thursday andwill continue through the Oct. 2 gas day or until further notice.The entitlement applies to delivery points north of Kemmerer (WY)Station and subjects a Receiving Party to penalties for overtakesmore than 3% greater than its confirmed nominations. Northwestnoted it has experienced continuous drafting throughout September,resulting in low Jackson Prairie storage levels and low systemlinepack. Additionally, the large unit at Soda Springs Stationimmediately north of Kemmerer went off-line Wednesday due tomechanical problems, reducing station capacity from 470,000 Dth/dto about 430,000 Dth/d. Repairs are expected to take three to fivedays. To avoid cutting primary gas at Soda Springs, Northwest mustrely on Jackson Prairie withdrawals, necessitating the entitlement.
Stage
Articles from Stage
House Subcommittee Hears CA Power Woes
A U.S. House Commerce Subcommittee set the stage Monday in SanDiego for a continuation of California’s “great electricitydebate,” and the actors all showed up to deliver their linespredictably from the often-conflicting perspectives of consumers,generators, state regulators, energy officials and federalregulators. With two San Diego-based members of the subcommitteeamong the Congressional lawmakers attending, all sides got in theirtwo-cents worth, and are expected to do the same today when theFederal Energy Regulatory Commission holds its hearing on San Diegoelectricity price spikes.
Transportation Notes
Pacific Gas & Electric did not extend a systemwide Stage 3low-inventory OFO (see Daily GPI, Aug. 30) beyond Wednesday.
Lower Price Caps to Sell into Cal-PX, ISO Sought
As California endured another Stage Two Electrical EmergencyWednesday, San Diego Gas & Electric (SDG&E) asked FERC toimpose a $250/MWh cap on the bids that suppliers make to sell powerinto the bulk electric markets of the California Power Exchange(Cal-PX) and the California Independent System Operator (Cal-ISO).
Transportation Notes
Pacific Gas & Electric issued a systemwide Stage 2 low-inventory OFO effective today. It has a very stringent tolerance of 1% for negative daily imbalances and penalties of $1/Dth.
Transportation Notes
Pacific Gas & Electric did not extend a systemwide Stage 1high-inventory OFO (see Daily GPI, July10) beyond Saturday.
Transportation Notes
Pacific Gas & Electric had a systemwide Stage 1high-inventory OFO in effect Wednesday, with penalties of 25cents/dth for positive daily imbalances exceeding a 1% tolerance.The OFO is being reduced to a customer-specific one effectivetoday. As of Wednesday PG&E was projecting that linepack wouldremain slightly above its target operating limit through Friday,then jump to much above its target Saturday.
Futures Break Record; Set Stage for Expiration Day
Adding to gains achieved during Monday’s impressive rebound,natural gas futures erupted higher yesterday as traders bid theJuly contract to a new all-time high for a prompt month at Nymex.After gapping higher to open at $4.65, July checked back and forth,before eventually closing at $4.686, up 12.6 cents for the session.
Transportation:
Pacific Gas & Electric had a systemwide high-inventory OFOin effect Monday but did not extend it through today. The Stage 2order carried penalties of $1/Dth for positive daily imbalancesexceeding a tolerance of 1%.
Contango Gets $3 Million Boost from Tribe
One of the tiniest Houston-based development stage companies,Whichonly entered the oil and gas business less than a year ago andwhich hardly had any operating funds at all in its first quarterstatement this year, got a huge boost Friday with a $2.5 millioninvestment from a Colorado Indian tribe. Along with the stockpurchase, the tribe’s fund invested another $480,000 in thecompany’s exploration program, bringing its total investment Fridayto nearly $3 million.
