utilities

Consumer advocates are expected to be out in force for a series of public hearings scheduled by the California Public Utilities Commission (CPUC) on a substantial rate increase request by Las-Vegas, NV-based Southwest Gas Corp.

The sole remaining Republican appointee on the five-member California Public Utilities Commission, Henry Duque, received a four-week extension to his term to have time to file an appeal of an earlier ruling regarding alleged conflict-of-interest violations involving his ownership of telecommunications stock of a company the CPUC regulates. The extension was granted despite an earlier court ruling recommending his removal from the state regulatory panel.

A newly formed coalition of municipal utilities, consumers, independent producers and energy service companies is warning that a potential natural gas supply crunch and higher retail energy prices are in store for this year due largely to speculator-induced price volatility within the markets.

A broad coalition of natural gas producers, consumer groups and utilities, including Apache Corp. and the American Public Gas Association, used sharp words Wednesday to criticize energy traders and marketers for manipulating gas and electricity markets to create volatility, which, they said, could be stopped if transparent trading systems were put in place by regulators.

New rules for Ohio retail gas marketers were finalized Tuesday by state regulators. The Public Utilities Commission of Ohio (PUCO) put the finishing touches on rules that will require marketer certification, allow governmental aggregation for competitive retail natural gas service and will provide regulators with much greater consumer protection authority.

As he started his first day on the job Monday, newly appointed California Public Utilities Commission member Michael Peevey faced a chorus of criticism from consumer groups challenging his objectivity, given his recent history as a utility and energy services senior executive. Peevey asked his critics not to “stereotype” him, and proceeded with cutting his ties to any energy industry executive and/or board positions, or stock ownership that would cause conflicts-of-interest questions.

A federal bankruptcy judge in San Francisco last Wednesday gave the California Public Utilities Commission (CPUC) approval to file an alternate reorganization plan for Pacific Gas and Electric Co. as part of the utility’s Chapter 11 proceedings. Both sides immediately interpreted Judge Dennis Montali’s decision as a plus for their side in the ongoing bankruptcy battle. The CPUC said it would file its plan by April 15, noting that it expects the creditors’ committee to support it.

Blame it on Enron Corp.’s collapse or commodity prices that have dropped from the heavens, but whatever the reason, utility executives are rethinking their once lofty notions of the merchant energy side of the business and instead have begun to turn more attention to their core generation businesses — a strategy change that has occurred in just one year.

Blame it on Enron Corp.’s collapse or commodity prices that have dropped from the heavens, but whatever the reason, utility executives are rethinking their once lofty notions of the merchant energy side of the business and instead have begun to turn more attention to their core generation businesses — a strategy change that has occurred in just one year.