Summer

Washington state regulators Wednesday approved new “time-of-day” rates and incentives to cut power use for customers of Puget Sound Energy (PSE) this summer to help ease the western power shortage.

Bidding is expected to be high for two Minerals Management Service Gulf of Mexico sales this summer, one that focuses on a region of the Central Gulf that has been a no man’s land for exploration and production, and another in the Western Gulf. Part of the attraction will be the added incentives for drillers, which MMS is using to increase domestic oil and gas production.

The staff of the Public Utilities Commission of Nevada has determined that Southwest Gas overpaid for natural gas last summer by about $8.13 million because of a poor hedging program and over-reliance on the spot market. As a result, the staff has recommended that amount be taken out of a rate balancing account and that the utility be ordered to improve its risk management practices.

Bidding is expected to be high for two Minerals Management Service Gulf of Mexico sales this summer, one that focuses on a region of the Central Gulf that has been a no man’s land for exploration and production, and another in the Western Gulf. Part of the attraction will be the added incentives for drillers, which MMS is using to increase domestic oil and gas production.

The staff of the Public Utilities Commission of Nevada has determined that Southwest Gas overpaid for natural gas last summer by about $8.13 million because of a poor hedging program and over-reliance on the spot market. As a result, the staff has recommended that amount be taken out of a rate balancing account and that the utility be ordered to improve its risk management practices.

The New England Power Pool (NEPOOL) has filed an energy conservation program with FERC that is designed to encourage reduced consumption of electricity during peak demand periods and help moderate price fluctuations in the wholesale electricity market. The program could reduce the daily energy requirement in the region by 300-600 MW and produce annual savings of $30 million.

The New England Power Pool (NEPOOL) has filed an energyconservation program with FERC that is designed to encouragereduced consumption of electricity during peak demand periods andhelp moderate price fluctuations in the wholesale electricitymarket. The program could reduce the daily energy requirement inthe region by 300-600 MW and produce annual savings of $30 million.

While power outages were still viewed as an inevitability thissummer in California, a comprehensive legislative, regulatory andcommercial solution to mounting energy debts was less certain lastweek as reports surfaced that creditors might force bankruptcy onthe state’s two ailing utilities.

In response to the “urgent” need for additional gas supplies toserve California’s electric generation markets this summer, KernRiver Gas Transmission has announced an emergency open season for135,000 Dth/d firm transportation service expected to be availableby July 1.