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Pastimes : The California Energy Crisis - Information & Forum

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To: deepenergyfella who started this subject	3/26/2001 6:27:57 PM
From: Raymond Duray	Read Replies (1) of 1715

El Paso Gas faces Complaint from California officials at the FERC, NY Times reports: nytimes.com <Snip>Power Woes Raise Questions Over Control of Gas Pipelines By RICHARD A. OPPEL Jr. and LOWELL BERGMAN arly last year, the El Paso Natural Gas Company took bids from two dozen companies for the right to ship enough natural gas through its pipeline from Texas and New Mexico to meet one-sixth of the daily demand of energy-starved California. The winner: El Paso's sister company, the El Paso Merchant Energy Company, which buys, sells and trades natural gas. The bidding was not close. El Paso Merchant offered twice as much for the capacity as the other companies bid, in total, for bits and pieces. Why pay so much more? California officials, who are pressing a complaint against El Paso at the Federal Energy Regulatory Commission, say the answer is simple. The state contends that El Paso Merchant, with help from its sister company, saw the transaction as a way to manipulate the price of natural gas by using its control of pipeline capacity. According to sealed documents obtained by The New York Times that are part of filings in the federal case, executives at El Paso Merchant said internally that the deal would give them "more control" of gas markets, including the "ability to influence the physical market" to benefit the company's financial positions. El Paso executives called the accusations fanciful,...... <Article continues>

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