Summer

In addition to providing about 1,500 MW of new power supply since the outset of summer, Calpine Corp. Tuesday told investors on a conference call that it has also enhanced California’s natural gas resources for the state market and its own operations.

If the Texas Public Utilities Commission is measuring the projected success of its deregulation program by the pilot program set to begin this summer, officials might wonder if they’re doing something wrong. Electric deregulation takes effect across the state on Jan. 1, but so far, it appears that customers — especially residential ones — are a little wary of how it works and what they will get out of it.

With plenty of new gas-fired generation firing up this summer, Houston-based Purvin & Gertz, an international energy consulting firm, is expecting prices to firm up, particularly in the U.S. Gulf Coast region with the average bidweek delivered-to-pipeline prices predicted to average $4.80/MMBtu in August, dropping in September and then peaking at $6/MMBtu in December.

In a sequence that likely will be repeated often this summer, California’s independent transmission grid operator, Cal-ISO, Thursday erred on the side of getting out advance warning of possible rolling blackouts only to pull back the emergency measure within minutes of the targeted time for blackouts to begin. As of 4 p.m. (PDT), the blackouts had not become necessary in the second consecutive day of Stage One and Two alerts.

Amid a buzz about higher retail rates and the need to conserve to cut down on summer’s looming blackouts, California Gov. Gray Davis Wednesday signed a new law (SB 6X) creating the “California Consumer Power and Conservation Financing Authority,” which will have broad powers to construct, own and operate electric generation and power facilities and finance energy conservation programs. The law becomes effective in 90 days.

There will be ample natural gas to meet the needs of power generators this summer and to inject into storage for next winter due to the growing number of industrial customers exiting the gas market as a result of escalating prices, said trading executives last week.

William has agreed to provide up to 60,000 MMBtu/d of summer no-notice natural gas transportation service to the new Aquila Crossroads Energy Center near Clarksdale, MS. Williams will build 5,400 feet of 12-inch pipe and related meter facilities off its Texas Gas system to serve the 320 MW simple cycle peaking facility, beginning in June 2002.

There will be ample natural gas to meet the needs of power generators this summer and to inject into storage for next winter due to the growing number of industrial customers exiting the gas market as a result of escalating prices, said trading executives yesterday.

Union Gas Ltd. is offering between 1-2 Bcf of peak storage capacity at its Dawn market hub for injection this summer and withdrawals during the coming winter season.