Daily GPI

The Maryland Public Service Commission has rejected an agreementthat would have enabled Washington Gas Light Co., which serves morethan 870,000 customers in the Washington, D.C. area, to implementan incentive-based rate plan. Even though it found some parts ofthe agreement worthwhile, MPSC said it had to either accept orreject the plan in its entirety.

The California Public Utilities Commission Thursday decided totemporarily mandate that large electricity customers who have optedfor price breaks by voluntarily agreeing to be curtailed duringextreme peak-demand periods remain on their interruptible scheduleat least through March 31, 2001. The regulators took the action tocoincide with a statewide effort now underway to beef up thecurtailment program before next summer to have more voluntarycurtailed load in place if needed to avoid rolling blackouts duringpeak-demand times.

Pacific Gas and Electric Co. was authorized by state regulatorsThursday to borrow an additional $1.4 billion in short-term debt tocover under-collections caused by wholesale power prices exceedingfrozen retail rates the utility is allowed to charge itselectricity customers under the state’s restructuring program.

Calpine Corp. added 700 MW of New England power generation toits portfolio on Friday by purchasing assets from Dartmouth,MA-based Energy Management Inc. (EMI) for $145 million and theassumption of about $220 million of project financing.

The National Energy Marketers Association’s (NEM) executivecommittee will vote on a final draft of a National EnergyTechnology Policy at the group’s Industry Leadership Roundtable onOct. 30 and 31 in The Woodlands, TX in an attempt to implementuniform internet standards and tax incentives to upgrade the U.S.energy infrastructure.

Avista Corp.’s T.M. “Tom” Matthews has stepped down as chairman,president and CEO of the Spokane, WA.-based energy company to spendmore time with his family, but has agreed to stay through the end ofthe year in a senior executive role. Matthews, 53, joined Avista in1998. The board of directors appointed Avista Executive Vice PresidentGary G. Ely, 53, as acting president and CEO. The board also said it”remains fully supportive of the company’s strategic direction.”Considered an emerging energy star just last year, the company hasbeen rocked by poor earnings and shareholder lawsuits this yearstemming from some questionable trading decisions made in April (seeDaily GPI, Aug. 1, June 22). However, last week, the companysaid it would report third quarter earnings that were above consensusestimates, earning 52 cents a share (see Daily GPI, Oct. 16).

While not plunging quite as steeply as the day before, pricesfor the weekend continued to record double-digit declines Friday.There was considerably more consistency across all markets than onThursday as virtually all points fell between 15 cents and about aquarter.

Calgary’s Petrobank Energy and Resources Ltd. has agreed to sellabout 85% of its entire production — petroleum and natural gasinterests in the Alder Flats and Cynthia areas of Alberta — forC$85 million to an unidentified “large independent oil and gasproducer.” Petrobank said the sale is effective Aug. 1, subject toregulatory and shareholder approvals. Closing is expected in earlyJanuary. Proceeds from the sale will be used to pay down debt andprovide capital for new projects.

After watching prices tumble 10% last week, bears in the naturalgas pit were content to cool their heels Friday in an amazinglyquiet trading session. The November contract slumped just 1.4 centsto close at $4.937 Friday after trading within a tight, 13-centtrading range. Estimated volume was light, with just 63,929contracts changing hands.