State

Producing state Kansas is sticking its toes in the water ofretail gas competition with a notice of inquiry (NOI) from theKansas Corporation Commission (KCC), “the goal of which is toexplore whether extending restructuring to all retail consumers isin the public interest. We also wish to explore other regulatoryalternatives which may bring benefits to smaller retail gasconsumers.”

Wild Goose Storage, California’s first merchant natural gasstorage facility, is set to begin operations April 1, at the sametime the state’s second merchant storage project gets a publicairing of its 18 Bcf proposal.

Oklahoma Attorney General Drew Edmondson told the state’sCorporation Commission the proposal by Oklahoma Natural Gas (ONG)to combine deregulation with an ongoing rate case at the OCC is notin ratepayers’ best interest.

PennzEnergy Co. — recently formed when Pennzoil Products Groupwas spun off to merge with Quaker State — is in the process ofreactivating its onshore U.S. operations and tip-toeing deeper intothe Gulf of Mexico. PennzEnergy operations are focused on threeareas: domestic onshore, domestic offshore, and international.Operations are in East and West Texas, on- and offshore Gulf ofMexico, and in Egypt, Azerbaijan, and Venezuela.

PennzEnergy Co. – recently formed when Pennzoil Products Groupwas spun off to merge with Quaker State – is in the process ofreactivating its onshore U.S. operations and tip-toeing deeper intothe Gulf of Mexico. PennzEnergy operations are focused on threeareas: domestic onshore, domestic offshore, and international.Operations are in the in East and West Texas, on and offshore Gulfof Mexico, and in Egypt, Azerbaijan, and Venezuela.

The Massachusetts Department of Telecommunications and Energy(DTE) sent an order (File # 98-32-B) last Wednesday to all 10 stategas utilities, requiring them to deregulate service to residentialcustomers by 2004. The order directed gas utilities to work withmarketers on planning for a competitive market during the five-yeartransition. After the first three years of the program, the DTEsaid it will review the situation to determine if additionalefforts are needed to help spur competition. Massachusettscommercial and industrial consumers have had gas customer choicesince 1993.

Columbia Gas of Pennsylvania CEO Gary J. Robinson praised aproposal by Pennsylvania’s governor to eliminate the 5% grossreceipts tax levied on the state’s residential gas users.

Washington Water Power is asking state regulators to approve anew natural gas purchasing plan which will turn the purchasefunction for its residential customers over to Avista Energy, itsunregulated affiliate.

A steep price spike highlighted a lasting change in natural gasprices at Sumas, the Washington state entry point for exports fromBritish Columbia, say Canadian producers and marketers.