Wholesale

In the current mix of global economic doldrums, low wholesale natural gas prices and dampened demand, Sempra Energy CEO Don Felsinger sees just the right alchemy that can turn into higher prices and demand. Those were some of the asides Felsinger offered to financial analysts last Thursday during a Sempra-hosted meeting in New York City.

Depressed wholesale natural gas and power prices, along with the prospects for curbing emissions to meet anticipated future carbon constraints, combined to drive down earnings in the fourth quarter for Edison International’s independent energy unit, Edison Mission Group (EMG), the parent company reported Monday as part of a conference call on its year-end 2008 earnings, which were up 4% over the previous year. Prospects for EMG this year are not much better, according to Edison CEO Ted Craver, speaking to analysts.

FERC last Thursday set a paper hearing on a remand of a long-running case centered on millions of dollars in Enron-era wholesale power contracts that western power companies protested tied them to artificially high prices. The Commission action came just 14 days after it officially received the remand of its decision to uphold the contracts. The paper hearing will be held in abeyance, however, while parties attempt a settlement of the seven-year old case.

Plunging wholesale natural gas prices since mid-summer will allow Xcel Energy to lower its retail electric utility charges in Texas at the outset of winter, but other factors will offset those savings longer term, the Minneapolis-based utility holding company said. Unrecovered higher fuel costs from last winter and spring, along with a pending general rate increase request, may raise retail power rates later next year.

Pacific Gas and Electric Co. (PG&E) is feeling the pressure from high natural gas wholesale prices and consumers will have to pay, parent company CEO Peter Darbee told financial analysts last Wednesday during a quarterly earnings conference call.

Pacific Gas and Electric Co. (PG&E) is feeling the pressure from high natural gas wholesale prices and consumers will have to pay, parent company CEO Peter Darbee told financial analysts Wednesday during a quarterly earnings conference call.

Noting that Spokane, WA-based Avista Utilities has filed for electricity and natural gas rate hikes due to rising wholesale costs, the staff of the Idaho Public Utilities Commission (PUC) will present workshops in Moscow and Coeur d’Alene, ID, on July 23 and 24, respectively, to explain the request and receive comments from northern Idaho customers.

Noting that Spokane, WA-based Avista Utilities has filed for electricity and natural gas rate hikes due to rising wholesale costs, the staff of the Idaho Public Utilities Commission (PUC) will present workshops in Moscow and Coeur d’Alene, ID, on July 23 and 24, respectively, to explain the request and receive comments from northern Idaho customers.

In a market environment where the only certainty is that there is none, natural gas wholesale buying requires a philosophy that is constantly reviewed and reiterated to organizational leaders, said Val Trinkley, general manager of EnergyUSA, speaking at GasMart 2008 in Chicago Thursday. The energy marketer with NiSource conducted a workshop on “Natural Gas Risk Management — Developing a Strategy.”