Yesterday

BP released its “Statistical Review of World Energy 2001” yesterday showing natural gas once again as the fastest growing fuel in 2000, with global consumption rising by 4.8% — the highest rate since 1996. However, the review also included for the first time a “Statistical Review of U.S. Energy.” For the U.S., BP notes, last year was a period when energy markets were characterized by high prices, low inventories, increased capacity utilization, and increased dependence on net energy imports. U.S. energy consumption growth in 2000, at 2.3%, was somewhat above the 10-year average of 1.8%, but well above the rate of growth in production, at 0.5%.

Attempting to draw a clear line in the sand with state regulators, PPL Corp. yesterday openly questioned the Montana Public Service Commission’s authority over the company’s power plants in the state, and PPL said it wouldn’t rule out the possibility of taking legal action in response to a PSC order issued Tuesday.

Looking to establish a foothold in the PJM market, NRG Energy yesterday announced that it has acquired 1,081 MW of baseload electric generating plants from Delmarva Power and Light, a subsidiary of Conectiv. As part of the agreement, NRG entered into both short- and long-term purchase power contracts with Delmarva Power to provide energy and capacity for the Delmarva Peninsula.

The Department of Transportation (DOT) yesterday announced it is seeking a fine of $2.52 million against El Paso Natural Gas for several “probable violations” that potentially contributed to the fatal explosion on its pipeline system in New Mexico last August. Although the agency called it the “largest civil penalty” ever sought against a pipeline operator for safety violations, it seemed rather conservative in light of the death toll of 12.

Duke Energy Gas Transmission (DEGT) and KeySpan Energy DeliveryLong Island (KEDLI) announced yesterday plans for an open seasonfor transportation services on their proposed Islander Eastpipeline, a 40-mile line that will bring natural gas fromConnecticut to Long Island, NY.

If you trade natural gas, yesterday was a good day to be glued to your chair. Approximately eight minutes ahead of its scheduled 2 p.m. EDT release, the American Gas Association reported that a whopping 106 Bcf was added to underground storage facilities during the week ending June 15, bringing working gas in storage levels to 49% full at 1,609 Bcf. Futures reacted instantly, tumbling 15 cents to $3.75 just 10 minutes after the report was released. The prompt July contract would never recover from the initial selling surge and finished 24.7 cents lower at $3.734.

The New York Independent System Operator’s (NYISO) board of directors yesterday voted unanimously to ask FERC to sign off on a penalty plan designed to deter market participants from manipulating New York’s wholesale electricity markets during times of tight power supply.

Westcoast CEO Michael Phelps said yesterday the company is planning to double the capacity of the Maritimes & Northeast Pipeline system to transport more than 1.2 Bcf/d in five years but expects an additional expansion to 2 Bcf/d by the end of the decade.

Williams’ Transcontinental Gas Pipe Line had an active day yesterday filing two applications with FERC to expand its eastern pipeline system. Its Momentum expansion project would add 526,000 Dth/d of firm capacity from Station 65 in Louisiana to markets in Alabama, Georgia and the Carolinas, and its Leidy East project would make up for the failed Phase III portion of its MarketLink expansion.