Wednesday, September 29, 2004

FERC sees CPUC as LNG hurdle

A member of the Federal Energy Regulatory Commission has stated that the California Public Utilities Commission may be the single greatest hurdle to lowering natural gas prices in America, according to the Dow Jones Energy wires:

Liquefied natural gas facilities may be the best way to prevent high natural gas prices, but development of those terminals is threatened by a jurisdictional challenge from California regulators, a member of the U.S. Federal Energy Regulatory Commission said Tuesday.

California utility regulators decided in early July to challenge FERC's claim to sole jurisdiction for siting LNG terminals. If the state prevails, LNG development will come to a standstill, FERC Commissioner Joseph Kelliher said at an industry conference, reiterating a concern he's raised previously.

"In my view, the biggest threat to LNG facilities is the jurisdictional challenge posed by the California Public Utilities Commission," Kelliher said. "Stakes are high in this dispute."

LNG is widely seen as a practical way to bridge the gap between growing demand for natural gas and declining North American supply.

I would add rogue NIMBY's to that list too.