Thorough

While agreeing that FERC needs to explore every issue in the California price-manipulation case against El Paso Natural Gas and its merchant power affiliates, Commissioner Nora M. Brownell has called on all parties to the action to “expeditiously” wrap up a supplemental hearing “so we can go to decision and move on.”

While agreeing that FERC needs to explore every issue in the California price-manipulation case against El Paso Natural Gas and its merchant power affiliates, Commissioner Nora M. Brownell has called on all parties to the action to “expeditiously” wrap up a supplemental hearing “so we can go to decision and move on.”

A group representing 32 industrial customers in the Pacific Northwest has asked FERC to conduct a more thorough analysis of Northwest Natural Gas Co.’s planned acquisition of Enron affiliate Portland General Electric (PGE). The group charges that the deal could reduce competition in the region’s natural gas transportation and power markets. Northwest Natural and Enron agreed to the $1.8 billion cash and stock transaction in October two months before Enron declared bankruptcy (see Power Market Today, Oct. 9).

Promax Energy Inc. said that based on recent test rates from its southeastern Alberta properties and a thorough review of gas price risk management strategies with its gas marketer, Coral Energy Canada Inc., it has physically hedged an additional 4 MMcf/d of gas at C$4.37/Mcf for three years beginning Dec. 1. This brings the total hedged volume to 12 MMcf/d with 8 MMcf/d at C$4.71 and 4 MMcf/d at C$4.37 for an average of C$4.59/Mcf. The company said approximately 50% of its current production will be hedged with the balance sold to the spot market. Promax Energy is a junior oil and gas exploration and production company focusing on natural gas in southeastern Alberta.

In a congressional hearing that featured a thorough review of the El Paso market manipulation case and all the issues contributing to the serious natural gas market malfunction last year in California, FERC Chairman Pat Wood told a House Government Reform subcommittee chaired by Doug Ose (R-CA) that he does not see a need for new legislation.