Winter

The Energy Information Administration is preparing take over the American Gas Association’s (AGA) storage survey at the end of the winter. But it first must get clearance from the Office of Management and Budget for the reporting burden placed on storage companies, EIA’s survey methodology and the budget requirements for conducting the survey. It also has to arrange the staffing and resources and perform an operational test before it can get a green light.

The Energy Information Administration is preparing take over the American Gas Association’s (AGA) storage survey at the end of the winter. But it first must get clearance from the Office of Management and Budget for the reporting burden placed on storage companies, EIA’s survey methodology and the budget requirements for conducting the survey. It also has to arrange the staffing and resources and perform an operational test before it can get a green light.

As an outgrowth of the winter-spring energy price and supply crunch that spawned a statewide emergency and two special sessions of the state legislature, California wound up this week with two new bills designed to promote cheaper, more reliable natural gas supplies. Gov. Gray Davis signed the bills (AB 1233 and AB 21XX) over the weekend.

National Fuel is holding an open season for up to 1 Bcf winter firm storage and transportation services (Nov. 1-Feb. 28). The service includes maximum injection of 10,000-30,000 Dth/d and a maximum withdrawal of 33,333 Dth/d. Receipt and delivery points include Columbia (Independence), Dominion (Ellisburg), Tennessee (Rose Lake), TransCanada (Niagara), Transco (Leidy) and Transco (Wharton). Bid sheets are available at National Fuel’s web site or by calling (716) 857-7740. For details call Jim Zernentsch (716) 857-7509.

With wholesale gas costs plummeting, Dominion East Ohio Gas said its customers will pay 25% less for natural gas in November, December and January than they paid during the same months a year earlier. Under a gas cost recovery (GCR) decrease filed on Wednesday with the Public Utilities Commission of Ohio (PUCO), Dominion East Ohio sales customers, starting Oct. 26, will pay $5.38/Mcf, down 12.8% from the current $6.17/Mcf and down 25% from the $7.18/Mcf they paid during the third quarter last year.

Transwestern Pipeline earlier this year illegally charged shippers market-based rates for firm transportation capacity to the California border “under the guise of negotiated rates,” according to prepared testimony of an energy industry analyst with the Federal Energy Regulatory Commission.

Despite continuing anxieties over supplies, Canadian natural-gas producers increased exports to the United States by 13% during the 2000-01 heating season, records kept by the National Energy Board show.

Unless there is a “major breakthrough in the Lower 48” in the next five years, Houston-based Apache Corp.’s COO sees its energy future outside of the United States, most likely in Canada, Egypt and Australia. F. Steven Farris also told Banc of America Securities Conference attendees that Apache plans to soon sell $250 million in assets, mostly related to a recent Canadian acquisition.

As natural gas prices soared last winter, significant switching from natural gas to residual fuel and heating oil made the “linkage” between the commodities all too clear, according to Raymond James & Associates’ John Gerdes in an energy brief released last week. Although natural gas is considered the fuel of choice to supply the nation’s growing power needs, the last five months of 2000 showed that price can change everything.