State

Dynegy Inc., which has teamed up with NRG Energy in westernstate power generation projects, has added a new connection,selling NRG a 50% interest in its Rocky Road Power Plant, a 250 MWnatural gas-fired, simple-cycle peaking facility in East Dundee,IL.

Fearing an end to pipeline competition in California, thestate’s regulators and Indicated Shippers have called on FERC tosummarily reject the three transportation agreements by which EnronNorth America Corp. has contracted for 1.25 Bcf/d of unsubscribedfirm capacity on El Paso Natural Gas.

Southern California Gas Co. filed a draft interim settlementwith state regulators last week that has backing from most of themajor end-users on its system, along with some marketers andpipelines. An alternate draft proposal from a minority of thestakeholders led by Enron, calling itself the California Alliancefor Competition, also will be filed, but probably not until afterthe holidays.

Fearing an end to pipeline competition in California, thestate’s regulators and Indicated Shippers have called on FERC tosummarily reject the three transportation agreements by which EnronNorth America Corp. has contracted for 1.25 Bcf/d of unsubscribedfirm capacity on El Paso Natural Gas.

The New Jersey Business & Industry Alliance (NJBIA), thelargest state-level employer association in the nation, isorganizing an energy purchasing pool to join the New Jersey choiceprogram. The group has selected NewEnergy and Power Direct,subsidiaries of independent power producer AES Corp. to create thepool Power New Jersey.

Oklahoma Corporation Commission Chairman Bob Anthony stillbelieves his state’s ratepayers are getting the short end of thestick in a 10-year supply contract that Oklahoma Natural Gas (ONG)originally made with now-bankrupt Dynamic Energy Resources. That1993 contract was divided and transferred to two other suppliersnow serving the utility under the original terms.

Oklahoma Corporation Commission Chairman Bob Anthony still isnot satisfied that his state’s ratepayers are not getting the shortend of the stick in a 10-year supply contract between OklahomaNatural Gas (ONG) and Dynamic Energy Resources. In a press releaseissued earlier this week, Anthony charges under the contract ONG ispaying 50% more than it should be for some of its gas supply andpassing the cost on to consumers.

Friday represented the eye of the storm for Georgia’s gas industry,as Atlanta Gas Light (AGL), the state’s largest distributor, andPeachtree Natural Gas, the bankrupt supplier to 177,000 gas customers,brokered an interim solution to their problems at a federal bankruptcycourt hearing. The hearing was a result of an earlier AGL filing withthe court, seeking to distribute Peachtree’s customers to other, “morecreditworthy” suppliers (see Daily GPI, Oct29).

Pacific Gas and Electric Co. attorneys expect to file a proposedsettlement with state regulators today for reducing imbalances andOFOs on its transmission pipeline system in northern California. Atleast 10 parties have signed in support of the proposed changes,including statewide consumer advocate The Utility Reform Network(TURN), the City of Palo Alto municipal electric utility andmerchant underground natural gas storage operator Wild GooseStorage.