Water

Williams Cos. took on more water Tuesday as Standard & Poor’s (S&P) lowered the energy giant’s corporate credit rating two notches to “BB+” (junk bond status) from “BBB.” The move followed the company’s second quarter outlook released Monday, which precipitated a stock price drop-off to a 20-year low in trading that day, and sparked speculation that cash-strapped Williams could become the target of a takeover (see Daily GPI, July 23). Williams Cos. stock closed at $1.19 after an 82-cent (40%) plummet in Tuesday’s trading.

Williams Cos. took on more water Tuesday as Standard & Poor’s (S&P) lowered the energy giant’s corporate credit rating two notches to “BB+” (junk bond status) from “BBB.” The move followed the company’s second quarter outlook released Monday, which precipitated a stock price drop-off to a 20-year low in trading that day, and sparked speculation that cash-strapped Williams could become the target of a takeover (see Daily GPI, July 23). Williams Cos. stock closed at $1.19 after an 82-cent (40%) plummet in Tuesday’s trading.

El Paso extended Lincoln Station compressor maintenance and water leak repairs on Belen Station’s Unit #1. San Juan Crossover capacity will continue to be reduced by 100 MMcf/d through Monday. The pipeline also said internal inspection pigging scheduled Friday (July 19) on Line 1208 will require a larger flow cut than previously announced. North Mainline capacity will be reduced by 160 MMcf/d.

El Paso extended Lincoln Station compressor maintenance and water leak repairs on Belen Station’s Unit #1. San Juan Crossover capacity will continue to be reduced by 100 MMcf/d through Monday. The pipeline also said internal inspection pigging scheduled Friday (July 19) on Line 1208 will require a larger flow cut than previously announced. North Mainline capacity will be reduced by 160 MMcf/d.

In an extensive review of the power portfolio purchased by the California Department of Water Resources (DWR), the state’s Bureau of State Audits found that many of the contracts purchased have to be paid for whether or not they are needed, and based on current forecasts, from the fourth quarter of 2003 through the first quarter of 2005, “the department has procured more power than consumers in Southern California need.”

The nation’s largest municipal utility, the City of Los Angeles Department of Water and Power (LADWP), has the dual challenge this month of streamlining its natural gas-buying abilities to conform with a new city charter and also adapting to a new general manager following the departure of the high-profile S. David Freeman, who now heads up California’s new state power authority. Freeman’s plans to take interests in pipelines or production have been placed on the back-burner due to favorable transportation and commodity prices right now, a department source said.

As part of its 53 long-term electricity contracts, California’s Department of Water Resources (DWR) is shopping for a portfolio of natural gas supplies of various duration to use in about half the deals that give the state the option of providing its own fuel supplies when it can beat prevailing market rates used by its power suppliers.

As part of its 53 long-term electricity contracts, California’s Department of Water Resources (DWR) is shopping for a portfolio of natural gas supplies of various duration to use in about half the deals that give the state the option of providing its own fuel supplies when it can beat prevailing market rates used by its power suppliers.

Chapter 11-mired Pacific Gas and Electric Co. last week accused the California Department of Water Resources (DWR), the state’s wholesale bulk electricity buyer, of overestimating its forecast of spot power purchase costs through next year by $3.1 billion, including overestimating the price of natural gas used to generate the power supplies.