Systems

Driven by continuing high wholesale natural gas costs and demand for infrastructure upgrades for both gas and electric utility distribution systems, Bellevue, WA-based Puget Sound Energy (PSE) late Wednesday filed with state of Washington regulators for a combined gas and electric rate increase collectively totaling $200 million in added revenues. This is PSE’s second general rate case filing in less than two years, and the regulatory review process may take up to 11 months.

The Louisiana Municipal Gas Authority (LMGA), which represents 57 small municipally owned natural gas distribution systems in the state, has asked FERC to waive the assessment of penalties, fees and charges — other than for transportation of gas to a customer — by pipelines on its member customers during the post-Hurricane Katrina emergency.

Arizona-based Stirling Energy Systems (SES) announced a contract with San Diego Gas & Electric (SDG&E) to provide between 300 MW and 900 MW of solar power, 30 times more solar power than is now being generated in the San Diego region.

With wildfires, threatened transmission systems and triple digit statewide temperatures, the California Independent System Operator (CAISO) ended another week of consecutive all-time peak-demand records, topping the 45,000 MW level twice, but managing to avoid calling any power alerts.

High-linepack OFOs by both of California’s major transmission/distribution systems (see Transportation Notes) sent price tremors throughout the West Thursday, with nearly all regional points down by as much as about 20 cents. In the East, quotes were mixed fairly closely to either side of flat, although a few Midcontinent pipes fell by as much as a dime or so.

Houston-based Louis Dreyfus Energy Services LP on Friday completed the acquisition of a 1,400-mile West Texas natural gas liquids (NGL) pipeline system and the Hattiesburg, MS liquefied petroleum gas (LPG) terminal from subsidiaries of ExxonMobil Corp. No financial details were disclosed.

Oneok said it completed a $240 million purchase of East Texas gas and oil properties and related gathering systems from Wagner & Brown Ltd. of Midland, TX. The deal gives Oneok an additional 177 Bcfe of proved reserves with a reserves-to-production index of 12.4 years. The transaction was financed through short-term borrowings. Over the long term, Oneok will finance this transaction with available cash, the issuance of equity or a combination of both. “This transaction not only expands the Oneok footprint, but it reinforces the Oneok strategy of owning and controlling reserves,” said Oneok Chairman David Kyle.

ONEOK Inc. has purchased 177.2 Bcfe of gas and oil reserves in East Texas with additional probable and potential reserves and related gathering systems from Wagner & Brown Ltd. of Midland, TX, for $240 million.

TransGas Energy Systems LLC (TGE) is seeking permission to construct and operate a 1,100 MW combined-cycle generation facility in Brooklyn, NY, which could deliver wholesale power to load pockets in Brooklyn, Queens and Manhattan beginning in 2006.