The Energy Policy Act of 2005 gave states a new federally enforceable right to access holding company books and records, but concern remains that some of these initiatives may run counter to the goal of capital attraction.

The Geopolitical Risks of LNG

To many energy-industry analysts, 2005 is a make-or-break year for the U.S. gas market. If we don't have at least several liquefied natural gas (LNG) terminals in construction by the end of the year, the country arguably will face serious gas-supply shortages and price spikes beginning in about 2008.¹

Perspective

How the filed-rate policy wreaks havoc- and what courts can do about it.

Like many venerable legal rules, the filed-rate doctrine is rarely questioned. Over the last century, it has served many important purposes. However, with deregulated wholesale electric power markets at the federal level and various degrees of deregulation across the states, both the doctrine's continued applicability and usefulness are suspect.

The conclusions made by the NPC gas study raise more questions than they answer.

In late September of 2003, the National Petroleum Council (NPC) issued a comprehensive study on the future of the U.S. natural gas industry.1

While NAESB and NERC struggle over the issue, North America steadily drifts toward unreliability.

Time is running out. It's been more than two years since the North American Electric Reliability Council (NERC) Joint Inadvertent Interchange Taskforce (JIITF), on which I served, issued its white paper[1] proposing how to price the unscheduled power (inadvertent interchange)¹ flowing between NERC-certified balancing authorities (BAs).

Perspective

Commission policies need to recognize customer obligations and state commission decisions.

Even the best of intentions can create unintended consequences. The Federal Energy Regulatory Commission (FERC) has acted aggressively and appropriately during the past few years to stimulate competitive wholesale electricity markets.

Commission Watch

CPUC questioned historic oversight authority.

To guarantee the continued growth of liquefied natural gas (LNG) importation and use in the United States, the energy industry needs to pay close attention to govern the regulation, siting, and operation of LNG import terminals-issues traditionally overseen by the federal government.

A new FERC decision veers away from congressional intent not to burden intrastate pipelines with interstate policies.

State commissions can set intrastate natural gas pipeline transportation rates except when the intrastate pipeline moves gas in interstate commerce. Then, the Federal Energy Regulatory Commission (FERC) regulates the rates under evolving Natural Gas Policy Act of 1978 (NGPA) standards. Two recent FERC orders in a GulfTerra Texas Pipeline L.P.

Despite development challenges, LNG capacity is destined to play a bigger role in the U.S. energy mix.

When MidAmerican Energy announced its plans to build a pipeline to bring stranded Alaskan natural gas into the lower-48 states, the U.S. energy industry stood up and took notice. If successful, the project will bring the largest infusion of gas that this country has seen in many years-and not a moment too soon.

A Risky Business Utilities wrestle with how much to charge for their product.

The trading model has many good points, including the imposition of market discipline upon both transfer prices and prices to external third parties. Trading also encourages the use of resources and capital at their market value and the cultivation of specialized skills within different business units. But applying the model, particularly to the risks of power pricing, continues to be a challenge.