System

FERC last week gave New York utilities a conditional go-ahead tocreate the New York Independent System Operator (NYISO), making itthe fourth ISO that the Commission has approved so far.

Due to excess supply levels threatening system integrity and aconstraint on storage injections, Sonat implemented an OperationalFlow Order Type 6 effective Saturday. The OFO carries tieredpenalties ranging up to $15/dth for shippers with positive dailyimbalances exceeding allocated volumes by 3% or 200 dekatherms. Forthe same reasons as above, Sonat began a production areapoint-specific OFO Type 5 for nine points on its 26-inch Main PassArea Line. A penalty of $15/dth is involved for affected shippersor poolers exceeding scheduled quantities by 4%. Finally, an OFOType 1 (force majeure notice) began Saturday in connection withSonat’s retirement of facilities at the Main Pass 127 platform,which involved shutting in the Main Pass 129 and Main Pass 129Redelivery points. The work, which originally had been scheduled tostart on Friday, was expected to last 24-48 hours.

FERC needs to make the responsibilities and line of authority ofindependent system operators “crystal clear” to make sure they donot interfere with pricing and the commodity portion of the market,according to an Electric Clearinghouse executive who said thatright now the California ISO is overstepping the bounds.

TECO Energy gas utility Peoples Gas System, Florida’s largestretail gas distributor, announced plans to expand distributionservice to southwest Florida. Customers in the Lee County area,including Fort Myers and Cape Coral as well as Naples andsurrounding communities, will be able to buy natural gas for thefirst time.

NGC Corp. touted several recent developments as evidence of itsstrong position in the California electricity marketplace.

A U.S. federal court resolved a dispute between Portland NaturalGas Transmission System (PNGTS) and Central Maine Power (CMP) overthe use of a CMP right-of-way for the installation of PNGTS. PNGTSwas granted a motion for preliminary injunction filed against CMPin March. The court’s action gives PNGTS immediate possession ofthe property rights on CMP-owned electric transmission corridorsnecessary to install pipeline facilities approved by the FederalEnergy Regulatory Commission (FERC).

KN Energy is holding an open season for expansion of its systemfrom production fields in Wyoming to the Rockport Hub in northcentral Colorado.

Portland Natural Gas Transmission System (PNGTS) told the FERCCentral Maine Power Co. (CMP) is off base in its argument againstsiting of construction activity for PNGTS’ Rumford-Jay lateral pipealong a CMP power line corridor. CMP is seeking a stay order fromthe Commission.

Despite a three-month delay because of technical interfaceproblems, the California Independent System Operator and theCalifornia Power Exchange Corp. (PX) announced they have completeda week’s worth of testing and have notified FERC they’re ready toopen the statewide electricity market on March 31. They intend tocommence operations by accepting bids in the Day Ahead market onMarch 31 with the first full day of operations being the day after.