After various fits and starts surrounding the issue over a number of months, California regulators Thursday established an alternative demand stand-by charge, called a “peaking rate,” for Southern California Gas Co., which could open up the utility to “economic bypass” by interstate pipeline projects lined up and ready to go at the border. The California Public Utilities Commission (CPUC) rejected the utility’s own proposal as “anti-competitive.”
Various
Articles from Various
UCLA Forecast Predicts CA Recession; Blames Power Crisis
With politicians and economists pointing fingers in various directions to attach responsibility for California’s electricity problems, the quarterly UCLA business school economic forecast last Thursday predicted a recession for the state, particularly in the north, driven largely by the electricity crisis. A separate analysis by the university and Cambridge Energy Research Associates (CERA) looked at two scenarios, advocating perhaps a different course than the one charted currently by the state.
UCLA Forecast Predicts CA Recession; Blames Power Crisis
With politicians and economists pointing fingers in various directions to attach responsibility for California’s electricity problems, the quarterly UCLA business school economic forecast last Thursday predicted a recession for the state, particularly in the north, driven largely by the electricity crisis. A separate analysis by the university and Cambridge Energy Research Associates (CERA) looked at two scenarios, advocating perhaps a different course than the one charted currently by the state.
AGA: Gas Choice Up in Commercial, Industrial Sectors
Despite exorbitant price spikes in natural gas and deregulation setbacks in various markets around the country, a new study released by the American Gas Association (AGA) revealed that an increasing number of small businesses and other commercial customers are purchasing their natural gas supplies from someone other than the local utility, continuing the evolution of competition in the natural gas industry.
AGA: Gas Choice Up in Commercial, Industrial Sectors
Despite exorbitant price spikes in natural gas and deregulation setbacks in various markets around the country, a new study released by the American Gas Association (AGA) revealed that an increasing number of small businesses and other commercial customers are purchasing their natural gas supplies from someone other than the local utility, continuing the evolution of competition in the natural gas industry.
Industry Briefs
The various owners of the Black Marlin Pipeline System, a75-mile long natural gas and condensate gathering system in theGulf of Mexico, have sold the line to Williams Field Services for$9.25 million. The line was purchased from Blue Dolphin Energy, a50% owner, MCNIC Pipeline & Processing Co., a 33.33% owner, andWBI Holdings, Inc., a 16.67% owner. The sale includes related shorefacilities servicing the High Island area. Ivar Siem, chairman ofprimary owner Blue Dolphin, said the company had purchased BlackMarlin in early 1999 “during a period when the system hadexperienced lower throughput volumes due to limited drillingactivity in the High Island area. Since then the activity level hasbeen very high and significant additional reserves have beendiscovered,” Siem added. “This is an opportunity for us to realizegood value for the asset. We can re-deploy a portion of the saleproceeds to other niche pipeline opportunities in the Gulf.”
PG&E, SoCalGas Butt Heads Over Supply
As tempers continue to get shorter in the midst of California’senergy predicament, the state’s two major investor-owned utilitiesbutted heads this week on a natural gas issue created as anoffshoot of the persistent electricity woes in the state. Itinvolves Pacific Gas and Electric Co.’s emergency filing to stateregulators Jan. 18 asking for Southern California Gas Co. to giveit some supplies in the face of its looming shortages, promptingSoCalGas to protest the request.
Black Marlin Sold to Williams
The various owners of the Black Marlin Pipeline System, a75-mile long natural gas and condensate gathering system in theGulf of Mexico, have sold the line to Williams Field Services for$9.25 million. The line was purchased from Blue Dolphin Energy, a50% owner, MCNIC Pipeline & Processing Co., a 33.33% owner, andWBI Holdings, Inc., a 16.67% owner. The sale includes related shorefacilities servicing the High Island area.
Storage Worries Seen as Main Cause of Rebound
More than one trader was surprised Friday when prices rallied byvarious amounts at most points. With more OFOs disappearing (see Transportation Notes), milder weatheralmost everywhere and the typical weekend drop in demand, it seemedreasonable to expect further softness, they thought. Instead, themajority of markets ranged from flat to about a half dollar higher.
Skyrocketing Prices Discourage Retail Service, Aggregation
The focal point of California’s and various other state energyderegulation plans — nonutility retail energy service providers— has been all but forgotten in the rounds of legal, regulatoryand political battles that have fallen out of skyrocketingwholesale natural gas and electricity prices this year. Althoughthe focal point of the angst has been California, the energyentrepreneurs are feeling the pinch at the retail level elsewhere,too.