Weeks

As blackouts finally swept through California yesterday afterweeks of warnings, the initial reaction was negative to theCalifornia legislature’s proposals to cure the state’s powerproblems. Most observers concluded there was little indication thatthe proposals would either provide the power needed to keep thelights on in the state or solve the utilities’ financial woes.

Columbia Gas of Ohio has dropped two marketers from its retail choice program in the last three weeks after the marketers failed to deliver gas into Columbia’s system to serve their customers. The defaults are the latest of several small marketers across the country to succumb to the volatility and high prices in the natural gas market. The current market “is accelerating the evolution of the marketplace,” said Columbia spokesman Steve Jablonski. “We’re seeing a shake-out in one winter that otherwise might have taken years.” Columbia has continued to deliver gas to customers of the marketers, Summit Natural Gas and Power Solutions and Nicole Energy Services. The customers will now go back on tariff rates. One other Ohio marketer has dropped out since the program started. Energy Max was terminated last Aug. 30. “We tried to work with all three,” Jablonski said, but were unsuccessful. Columbia’s Ohio choice program currently has 14 marketers and about 500,000 customers, out of 1.3 million Columbia customers. Nicole had about 300 mostly small commercial customers and Summit had 3,800. Columbia of Ohio’s current tariff rates are $7.30 an Mcf. The company has made a gas cost recovery filing to raise the rate to $8.60 in February.

Columbia Gas of Ohio has dropped two marketers from its retailchoice program in the last three weeks after the marketers failedto deliver gas into Columbia’s system to serve their customers. Thedefaults are the latest of several small marketers across thecountry to succumb to the volatility and high prices in the naturalgas market.

In what could be called a dark horse choice following weeks ofspeculation that one of several energy heavyweights would be tappedto fill the Energy Department Cabinet seat for President-electGeorge W. Bush, former Michigan Sen. Spencer Abraham (R) wasnominated to serve as energy secretary yesterday. Abraham wasdefeated last November in his first re-election bid.

Just two weeks after unveiling plans to build a pipeline to transport Alaskan North Slope gas to the Lower 48, BP has teamed up with Chevron Corp. and Burlington Resources Inc. to produce gas in the Canadian Arctic. Although no timetable was released, the companies said last week they will spend “considerable resources” to build a production base in the Mackenzie Delta.

Just two weeks after unveiling plans to build a pipeline totransport Alaskan North Slope gas to the Lower 48, BP has teamed upwith Chevron Corp. and Burlington Resources Inc. to produce gas inthe Canadian Arctic. Although no timetable was released, thecompanies said this week they will spend “considerable resources”to build a production base in the Mackenzie Delta.

Dynegydirect, the B2B portal and trading site launched by Houston-based Dynegy Inc. that began trading Nov. 1, announced it had exceeded $1.5 billion in online notional transactions by early last week, with more than $1 billion of the energy and communications commodity transactions generated by new customers. The site now has more than 400 registered users (see NGI, Oct. 23).

Dynegydirect, the B2B portal and trading site that was launchedby Houston-based Dynegy Inc. and began trading Nov. 1, has alreadyexceeded $1.5 billion in online notional transactions, with morethan $1 billion of the energy and communications commoditytransactions generated by new customers. The site now has more than400 registered users (see Daily GPI, Oct. 17).

Almost two weeks after Williams and Duke Energy announced they wereacquiring The Coastal Corp.’s yet-to-be-built 744-mile GulfstreamNatural Gas System (pipeline), Coastal reported that it has enteredinto a $310 million purchase agreement with Berg Steel Pipe tomanufacture and deliver almost all of the steel piping needed forconstruction (see Daily GPI, Nov. 20).