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Enron Mail |
USA: UPDATE 1-PG&E opens bids to add 1.2 bcf of natgas in Calif.
Reuters English News Service, 05/30/01 US FERC Plans Technical Conference On RTO 'Seams' Issue Dow Jones Energy Service, 05/30/01 UK Wind Pwr Co Appeals Proj Rejection In Landmark Case Dow Jones Energy Service, 05/30/01 India Govt Looks To Other States To Purchase Enron Power Dow Jones International News, 05/30/01 Official: Enron plant stops producing power after power pact canceled Associated Press Newswires, 05/30/01 INDIA: India says committed to resolve Enron dispute. Reuters English News Service, 05/30/01 USA: UPDATE 1-PG&E opens bids to add 1.2 bcf of natgas in Calif. 05/30/2001 Reuters English News Service (C) Reuters Limited 2001. SAN FRANCISCO, May 30 (Reuters) - Pacific Gas & Electric Co., in an effort to determine interest in expanding its California natural gas pipeline system, said it was accepting bids for up to 1.2 billion cubic feet a day (bcfd) of gas transport capacity. The move by the company, a subsidiary of San Francisco-based PG&E Corp. , responds to California's growing demand for natural gas to run new power plants. Gas suppliers and big industrial customers participating in the bidding round, called an open season, have until July 31 to submit offers stating how much pipeline capacity they are willing to purchase and the price they are willing to pay. Based on the results of this round, PG&E will decide whether to proceed with the planned 1.2 bcf expansion - enough to run seven 1,000 megawatt gas-fired power plants - or modify it to accommodate an even bigger volume of gas. As it stands, PG&E's open season is offering firm capacity on its its Redwood, Baja, and Silverado pipelines. These lines transport gas from Malin, Oregon; Topock, Arizona, and California gas production to the company's local transmission system and other pipelines. PG&E's current intrastate pipeline system can transport more than 3 bcf of gas a day throughout Northern and Central California. Over the past year, utilization rates on many California pipelines have jumped from 75 percent to near full capacity, limiting deliveries into the state needed to drive gas-fired power plants. Demand for gas, which already accounts for more than a third of California's power generation, is expected to jump. Since April 1999, California has approved 14 major gas-fired projects with a combined generation capacity of more than 9,500 megawatts. Ten gas-fired plants, with a total generation capacity of more than 6,000 megawatts, are already under construction. Over the past three months plans to build or expand interstate lines carrying gas to California have been announced by Sempra Energy unit Southern California Gas Co., Enron unit Transwestern, Williams Cos' unit Kern River Transmission, El Paso Corp. units El Paso Natural Gas Co. and Mohave Pipeline Co., Questar Corp. , Calpine Corp. and Kinder Morgan . Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. US FERC Plans Technical Conference On RTO 'Seams' Issue 05/30/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) WASHINGTON -(Dow Jones)- The U.S. Federal Energy Regulatory Commission will hold a technical conference in June or July on the coordination of wholesale power transactions among regional transmission organizations, or RTOs, FERC Chairman Curt Hebert announced Wednesday. FERC is in the midst of implementing a sweeping order that directs the utilities it regulates to turn over their transmission assets to independent control by RTOs, which are slated to begin operating at the end of this year. The order aims to promote more liquid regional wholesale power markets by creating independent power-grid operators, removing the remaining ability of vertically integrated utilities to use control of transmission to competitive benefit in power markets. In December, competitive power suppliers and industrial consumers petitioned the commission to convene a technical conference on what was termed the "seams" issue involving wholesale power transactions from one RTO-administered grid area to another. Unless the "seams" issue is addressed, "RTOs could soon resemble huge speed bumps which could not just slow down, but do permanent harm to the vehicle of competition," the petitioners warned. Addressing the "seams" issue is "absolutely crucial to the RTO process," Hebert said Wednesday, expressing the hope that the conference can be scheduled before July and allow FERC to "figure out the right way to do it." The groups that petitioned for the technical conference welcomed the decision to hold the technical conference. "It's overdue, but we appreciate the fact that it's coming about," said John Hughes, technical director at the Electricity Consumers Resource Council. ELCON represents large industrial electricity users. "Looking at the seams issues and addressing the seams issues successfully will address an awful lot of problems we see in terms of balkanized, dysfunctional markets," Hughes said. ELCON was joined in the petition by Enron Power Marketing Inc. (ENE), Reliant Energy Power Generation (REI) and Dynegy Inc. (DYN), and the Electric Power Supply Association. EPSA, which represents competitive power producers and marketers, is "thrilled" that FERC will address the issue, said spokesman Mark Stultz. Addressing the seams issue is "critical with regard to allowing RTOs to function and to enhance the movement of electricity across the country," Stultz said. "If you're moving toward a national grid, as the administration has proposed in its national energy policy, you want to make sure you don't have disconnects at the seams of these RTOs," he said. "The more standardized the business practices for the grid the better," said Stultz. In March, the commission sought comment on whether to hold the technical conference. At the time, Commissioner William Massey welcomed the move, noting that the lack of standardized procedures could pose "an impediment to trade." Massey called for FERC to shepherd an industrywide effort to develop consistent standards for information and terminology regarding scheduling and reservation of transmission capacity among RTOs - including the development of "generic interface procedures." FERC spurred a similar standardization process in the natural gas industry, which resulted in creation of a Gas Industry Standards Board, or GISB. GISB produced uniform communications protocols for reserving pipeline capacity and standardized business practices, Massey noted, expressing the desire for the electric industry to do the same. By Bryan Lee, Dow Jones Newswires, 202-862-6647, bryan.lee@dowjones.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. UK Wind Pwr Co Appeals Proj Rejection In Landmark Case Of DOW JONES NEWSWIRES 05/30/2001 Dow Jones Energy Service (Copyright © 2001, Dow Jones & Company, Inc.) Germana Canzi LONDON -(Dow Jones)- U.K. wind-power developer Ecogen Developments Ltd. said Wednesday it will challenge the legality of a government decision to reject its Humble Hill project after the Ministry of Defense said the turbines would interfere with surveillance radar. The case could be an important precedent in determining the viability of a wave of offshore wind projects sponsored by companies such as Royal/Dutch Shell (RD), Enron Corp. (ENE), Powergen PLC (PWG) and TXU Corp (TXU). In April, the Crown Estates granted an option for the building of up to 13 offshore power projects, which together could produce up to 1,500 megawatts of electricity to around one million households. The decision to halt the Humble Hill project took the wind power industry by surprise, given the strong support of wind energy by the U.K. government, which aims to achieve 10% of power generation from renewable sources by 2010. Also, in February, Energy Minister Peter Hain announced plans to cut red tape for wind-energy projects. The results of a consultation with the industry for the creation of a one-stop-shop to facilitate speedy approval of the new wind-farm projects is due within days. However, the Ministry of Defense said the objections brought against Humble Hill could apply potentially to other projects, including some of the offshore wind projects. "We will assess wind farms on a case-by-case basis," a Ministry of Defense spokesman told Dow Jones Newswires. In addition to wind farms located within reach of surveillance radars, projects within a Tactical Training Area, where aircraft can be flown at 100 feet above ground level, may also face opposition from the Ministry of Defense. However, the Ministry said there was no "blanket ban" and that wind projects located close to a radar had been given the go-ahead in the past. Companies that may be affected by these developments include Scottish Power PLC (SPW), Royal/Dutch Shell and Elsam AS, which together plan to place up to 90 wind turbines seven kilometers offshore Cleveleys in Lancashire. Although the Ministry of Defense hasn't raised formal objections so far, it has notified developers that the project is located within scope of a military radar, a Scottish Power spokesman said. "The news from the Ministry of Defense is quite disquieting," a spokeswoman for the British Wind Energy Association said. -By Germana Canzi, Dow Jones Newswires; 44-20-7842-9283; germana.canzi@dowjones.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. India Govt Looks To Other States To Purchase Enron Power 05/30/2001 Dow Jones International News (Copyright © 2001, Dow Jones & Company, Inc.) BOMBAY -(Dow Jones)- India's federal government said Wednesday that it is approaching other states besides Maharashtra to see if they can buy power from the Dabhol Power Co., an Enron Corp. (ENE) subsidiary, in a bid to overcome the long-standing power supply dispute between DPC and the local power utility. "The Minister of Power has issued directions to the Central Electricity Authority for discussions with states that are short of power, the quantity of power they can absorb, and the tariff at which the power can be sold to them," a statement from the federal Ministry of Power said. The statement follows the second round of talks of a negotiating panel, made up of officials from the federal and state governments and the Maharashtra State Electricity Board, that met DPC executives Tuesday in a bid to resolve their differences. The government statement said both the DPC and the MSEB have agreed to look at the options available for reducing the cost of power. Power tariffs, deemed "unaffordable" by the state government, are at the core of this dispute. The $3 billion Dabhol power plant, located 335 kilometers south of Bombay, will have a capacity of 2,184 megawatts of power when the second phase is completed later this year. The federal government also said in its statement that it is "committed to make all possible efforts to resolve the issues concerning the project in consultation with all stakeholders." On Tuesday, the MSEB stopped buying power from the two-year-old Dabhol plant. This move came five days after the MSEB told DPC that it was canceling the 1995 Power Purchasing Agreement between the two parties that sets electricity prices. MSEB officials said Wednesday that the Dabhol plant has stopped producing electricity. "We can surmise it (the plant) is closed, for Maharashtra state is the only purchaser of power," said a senior MSEB official. He added, "The (negotiation panel) meetings are going on and when it (the plant) will reopen will depend on this." The DPC maintains that it hasn't shut down its plant. "The plant continues to be operational as required by the Power Purchase Agreement," said a company statement. "We will continue to follow the PPA and meet our contractual obligations, enforcing our rights under contracts and taking various disputes to the resolution process," it added. -By Steve Percy, Dow Jones Newswires, 91 22 2884211; steve.percy@dowjones.com Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. Official: Enron plant stops producing power after power pact canceled By RAMOLA TALWAR BADAM Associated Press Writer 05/30/2001 Associated Press Newswires Copyright 2001. The Associated Press. All Rights Reserved. BOMBAY, India (AP) - A power plant run by Houston-based Enron Corp. has stopped producing electricity in western India following a state utility's decision to stop buying power from the U.S. power giant, a state official said Wednesday. A top official from the Maharashtra State Electricity Board told The Associated Press on condition of anonymity that the plant is probably closed, since the state is the plant's only customer. The official said the plant could begin generating electricity once talks between the government and Enron officials resolve a dispute over a 1995 power purchasing agreement. The state board stopped buying power from the 2-year-old naphtha plant Tuesday, amid accusations of exorbitant prices charged by Dabhol Power Company, Enron's Indian unit. This came five days after the MSEB notified the company it was canceling an agreement to buy power. The western Indian state of Maharashtra would not suffer a power shortage following the state utility's decision to stop buying Dabhol electricity, the board official said. However, a Dabhol Power Company spokesman declined to comment on the status of the plant, located 210 miles south of Bombay. The company had earlier said the state-run utility had no legal right to cancel the purchase agreement. Federal and state officials are currently negotiating with the state utility and Enron officials about the power purchasing agreement. Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved. INDIA: India says committed to resolve Enron dispute. 05/30/2001 Reuters English News Service (C) Reuters Limited 2001. NEW DELHI, May 30 (Reuters) - Indian Power Minister Suresh Prabhu said on Wednesday the federal government was committed to help resolve the dispute between U.S. energy giant Enron Corp and a local utility over a $2.9-billion power plant. "The government of India remains committed to make all possible efforts to resolve the issues concerning the project in consultation with all stakeholders," a government statement quoted Prabhu as saying. Enron and the Maharashtra State Electricity Board (MSEB) have been locked in a wrangle over payment for power purchased by the utility. Earlier on Wednesday, the chairman of MSEB, the sole buyer of Enron's Dabhol Power Co, said the utility had stopped purchasing power from Enron. MSEB officials said Dabhol had stopped producing power since noon on Tuesday. The statement said the government had asked officials to ask power-deficient states about their requirement of electricity and the cost they were willing to pay. (New Delhi Newsroom +91-11-3012024 Fax +91-11-3014043 himangshu.watts@reuters.com). Copyright , 2000 Dow Jones & Company, Inc. All Rights Reserved.
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