Stakeholders

Western industry stakeholders heaped mostly praise on the 2005 Energy Policy Act Monday, following President Bush’s signing of the legislation. California’s governor, the state’s largest electric utility and the federal government’s large regional electricity marketer/transporter in the Pacific Northwest all issued initial reactions.

Unlike before, during and after the wholesale energy market implosion in the West when California energy stakeholders were out of sync with state policymakers, the state’s chief regulator this year sees a consensus forming through increased collaboration among all of the key players at both the federal and state levels.

A private equity firm controlled by Microsoft Corp. co-founder Paul Allen will most likely be buying Houston-based midstream operator Plains Resources Inc. after two of its major investor groups agreed to back the firm’s bid.

Some of the state’s biggest stakeholders wasted no time in voicing support for Gov. Arnold Schwarzenegger’s initial outline of his electricity priorities, including support for a core/noncore market structure, more renewable energy use, and long-term contracts for the state’s three private-sector utilities.

Even as California’s new governor-elect and various stakeholders emphasize more electricity from renewable sources, the initial proposed power procurement plans by two of the state’s major electric utilities last week emphasized new natural gas-fired power plants. And one those plants is the controversial one that Southern California Edison Co. is attempting to develop with an unregulated affiliate owned by its parent, Edison International.

California energy stakeholders are sounding various levels of alarm as summer nears with both natural gas supply and prices uncertain at best in a state that is highly reliant on the fuel for its electricity generating plants, large industrial loads and home heating needs. A typical homeowner in Pacific Gas and Electric Co.’s territory in the northern half of the state is paying $3/month more for gas right now, a utility spokesperson said.

California energy stakeholders are sounding various levels of alarm as summer nears with both natural gas supply and prices uncertain at best in a state that is highly reliant on the fuel for its electricity generating plants, large industrial loads and home heating needs. A typical homeowner in Pacific Gas and Electric Co.’s territory in the northern half of the state is paying $3/month more for gas right now, a utility spokesperson said.

A group of 29 stakeholders made up of consumer advocates, membership organizations, trade associations and individual corporations last week sent a letter to members of a House-Senate energy bill conference committee urging the removal of electricity provisions from any final federal energy legislation.

Consumer unrest in the face of substantial retail power rate increases over the past 12 months throughout Oregon bubbled to the top last week with stronger calls for a consumer-county government spawned effort to buy Portland General Electric Co. (PGE) from its bankrupt parent, Enron Corp. The proposal envisions rolling back rates and turning PGE into a nonprofit utility. However, none of the local government entities has endorsed the proposal at this time.