Yesterday

PG&E Gas Transmission Northwest Corp. got the thumbs-up from FERC yesterday to expand the capacity of its system in the Pacific Northwest by 210,800 Dth/d on an annual firm basis.

The Republican majority of the House Resources Committee yesterday fought off two attempts by Democratic members to remove from energy legislation a controversial provision that would open the coastal region of the Arctic National Wildlife Refuge (ANWR) to oil and natural gas drilling.

KeySpan Corp. (KSE) revealed yesterday that it will be taking a $30 million after-tax second quarter charge, or 22 cents per share, against earnings to tie up some recently discovered loose ends on several construction projects of its Roy Kay Companies subsidiary, which it purchased last year. CEO Robert Catell also said the recent declines in gas and power prices have forced a downward revision in full-year results for the company.

A spokesperson for the Electric Reliability Council of Texas Inc. (ERCOT) yesterday expressed optimism that ERCOT will be able to meet a Friday deadline to complete additional interactive testing with utilities and new market competitors before it begins operating as a single control area, which will in turn clear the way for a full ramp-up of the state’s deregulation pilot. But ERCOT’s Heather Tindall also refused to rule out further delays if the council determines that its systems are not up to snuff by the time the latest deadline rolls around July 20.

A western senator yesterday urged Capitol Hill lawmakers not to spend too much time on the issue of drilling in the Arctic National Wildlife Refuge because, he cautions, it’s not going to get through Congress.

Highlighting TransAlta’s increased attention to the generation side of its business, the company yesterday said that it has signed an agreement to sell its Alberta-based transmission business to a consortium of companies collectively known as AltaLink.

Bowing to pressure from the state of Florida, Interior Secretary Gale Norton announced yesterday the department has significantly scaled back the amount of offshore acreage that will be available for the controversial Lease Sale 181 off the coast of Florida later this year.

El Paso Corp. gained a foothold in western Canada yesterday with the purchase of Canadian independent Velvet Exploration Ltd. for C$8.15/share or about US$280 million, including the assumption of US$52 million in debt. Velvet holds about 172 Bcf of net proved reserves (59% gas) in the Western Canadian Sedimentary Basin and 403,000 acres of undeveloped land. El Paso said the total acquisition cost per proved thousand cubic feet equivalent (Mcfe) is US$1.16, after allocating value to Velvet’s land, seismic position and tax pools.

The House voted by a narrow margin yesterday to retain a controversial measure that attempts to block construction of the 744-mile Gulfstream pipeline project that would transport gas from Mobile Bay, AL, across the Gulf of Mexico to Florida.