Page 8 - Intelligence Press News Today

Allegheny Energy Inc. electric delivery subsidiary Allegheny Power requested permission last week from the Virginia State Corporation Commission (SCC) to recover the increased cost of purchasing power beginning July 1, 2007. With Dominion Virginia Power's similar filing earlier in the week, Allegheny's action marks the second such request last week by a Virginia utility due to the rising costs of power generation fuels.

Based on the proposed storage and pipeline infrastructure projects pending at FERC, the natural gas storage business is alive and well and is likely to grow in the short and long term, according to a federal energy official speaking as part of a panel discussion last Tuesday at GasMart 2010 in Chicago. Storage was called the perfect partner for new supply projects.

The Minerals Management Service's plan to shorten the initial lease terms for an upcoming Central Gulf of Mexico (GOM) sale "is one more impediment to the development of domestic oil and natural gas," the head of the American Petroleum Institute (API) said.

As President Obama last week encouraged Democrats on the House Energy and Commerce to reach a consensus on climate change legislation, Committee Chairman Henry Waxman (D-CA) remained mum on the potential changes that were being negotiated with moderate Democrats and when markup of the measure would occur. He is expected to unveil a new compromise approach this week.

Interior Department's Bureau of Land Management (BLM), in a plan released Friday, said it would make available land for leasing in the Northeast portion of the National Petroleum Reserve-Alaska (NPR-A) that could yield nearly three billion barrels of crude oil and trillions of cubic feet of natural gas for North American markets through gas pipelines that are currently in the planning stages.

An investigation continued Thursday in the natural gas explosion that destroyed most of a city block in a shopping district Tuesday night in Kansas City, MO. A snow storm that blanketed the region Wednesday night had slowed progress, officials said.

The Republican draft energy bill was close to emerging from three House committees Wednesday with provisions affecting natural gas virtually unscathed by a host of defeated amendments offered by Democrats.

Physical prices Monday were up a nickel on average as West Coast traders reported power shortfalls resulting from a delayed restart of nuclear generating capacity, and warm temperatures in Texas added to loads. Government figures reported a modest decline in natural gas production and futures romped higher. At the close of trading June had increased 9.9 cents to $2.285 on stout volume, and July gained 9.5 cents to $2.394. June crude oil eased 6 cents to $104.87/bbl.

Black Hills Corp. and Great Plains Energy Inc. closed their asset purchase and merger of Aquila Inc. Monday, the companies said. The closing is effective Monday for legal, accounting and operational purposes.

California's energy future is balanced precariously between runaway costs and the threat of severe shortages, particularly in a "hotter-than-average" summer, according to the California Energy Commission's (CEC) draft 2005 "Integrated Energy Policy Report," released last Friday. Touching on everything from global climate change to the cost of gasoline and growing reliance on natural gas, the 157-page report delivers a sobering message for Californians.