Recently in Energy Category

BP engineers began a critical test of their leaking Gulf of Mexico oil well on Wednesday evening in an effort to determine if the pipes were structurally sound enough to allow them to seal off the gushing crude.  The test will measure the pressure inside the well. High-pressure readings for at least 48 hours may suggest that the well casings are relatively undamaged, which could mean it is safe to leave the well capped from above. And that, of course, would mean the incessant gush of oil, which has already despoiled ecosystems, livelihoods and lives, may finally stop, perhaps by the end of the week.

But the test itself is risky business. It requires that the well be sealed off temporarily with a snug, specially constructed capping stack that was latched onto the top of the well on Monday. And much like a thumb in a hole-studded garden hose, the cap could push oil out of any cracks that might exist in the well.

That scenario, in turn, could cause oil to seep upward and begin gushing from the sea bed, potentially turning the well into a ragged crater.  “That is THE worst case scenario,” said Iraj Ershaghi, a petroleum engineering expert at the University of Southern California. “Nobody has the technology to handle that.”

Read more: BusinessMirror.com.

Save the Lampasas River (STLR) will take their concerns over the the state-mandated Competitive Renewable Energy Zones project to the Texas Public Utilities Commission. CREZ is part of a Texas Senate bill to get electricity generated by the wind from the Panhandle and West Texas to the more heavily populated parts of the state. Once completed in 2012, CREZ will have created more than 2,400 miles of high voltage lines transmitting 18,500 megawatts of wind energy. 

STLR says the group recognizes the need for the lines in a booming state, but from its fact gathering has come to the conclusion that there is simply a better place for it. STLR believes it has enough evidence to show there is a better route from the choices available. The group’s expert witness has identified a more northern route out of the 40 options that takes it away from the river. It goes along existing lines and according to Ware, is $9 million cheaper to build.

For more, txfb.org.

ExxonMobil's natural gas expert expert witness testified on the production process for natural gas at the LaBarge Project in southwestern Wyoming. The case was sent to the Supreme Court of Wyoming, which ruled on November 12, (2009 WY 139).

The current litigation brings before us ExxonMobil's dispute with the Wyoming Department of Revenue over the taxation of natural gas for production year 2005. The Board of Equalization first heard and decided the dispute. ExxonMobil appealed two key aspects of the Board's decision to the district court. Pursuant to W.R.A.P. 12.09(b), the district court certified the case directly to us for review. For the reasons set forth in this opinion, we will reverse the decision of the Board, and remand the case for further proceedings. 

Excerpted from leagle.com.

The Public Counsel Section of the Washington State Attorney General’s Office on Monday  challenged electric and gas rate increases proposed by Avista, saying the Spokane, WA, based utility’s request is not justified and that, in fact, the company might be charging its customers too much for service. 

Avista’s request, filed with the Utilities and Transportation Commission (UTC) in January 2009 would increase the electric rates of its residential customers by 18.5 percent. Overall, the proposed request would generate an additional $74.7 million in revenues – $69.8 million from electric customers and $4.9 million from gas customers (a 2.4 percent overall increase).

But if the UTC approves all of Public Counsel’s recommendations, Avista’s electric revenues would be reduced approximately $12 million below current levels, resulting in lower electric rates. Revenues from gas rates would only rise by approximately $400,000.  Avista serves 230,364 electric customers and 143,673 natural gas customers mostly living in Eastern Washington.  Proceedings to cross-examine expert witnesses are scheduled to begin Oct. 6.

Excerpted from the Washington State Office of the Attorney General press release.  

(Source: Milwaukee Journal Sentinel) By THOMAS CONTENT

A utility watchdog group received more than $253,000 in funding Thursday to hire expert witnesses who will testify about more than $300 million in power price increases sought by several Wisconsin utilities, including We Energies.

The Citizens' Utility Board received more than $93,000 in funding from the state Public Service Commission for We Energies' proposal to increase electricity rates by $126 million in 2010. The group also received $99,000 for a pair of rate cases involving the Green Bay electric utility Wisconsin Public Service Corp. The remainder will be spent in rate cases involving two Madison-based utilities...

Several of the price increases are controversial this year because utilities are asking for permission to raise rates in part because power sales are declining. That's a main factor in the increase proposed by Wisconsin Power & Light Co. of Madison and a key factor driving the proposed We Energies increase.

Vasilios Manousiouthakis, a professor of chemical and biomolecular engineering at the UCLA Henry Samueli School of Engineering and Applied Science, has been awarded $2.1 million in grant funding to build a state-of-the-art hydrogen fueling station on the UCLA campus.  A $1.7 million grant from the California Air Resources Board (CARB) and a $400,000 grant from the state's Mobile Source Air Pollution Reduction Review Committee (MSRC) will go toward the construction of one of the largest hydrogen fueling stations in California, with a capacity to produce 140 kilograms of hydrogen a day for use in hydrogen-powered vehicles...

Major energy providers and automotive manufacturers view hydrogen-powered fuel-cell vehicles as the most sustainable mobility solution in the long term. Manousiouthakis, a systems engineering expert who focuses on the development of novel hydrogen production methods, believes that hydrogen production based on the reforming of natural gas - a process that involves the endothermic transformation of natural gas and water into hydrogen and carbon dioxide - is the most economical route for hydrogen production today.

Excerpted from ImperialValleyNews.com.

The Energy Resources Conservation Board announced last week the dates for the continuation of the public hearing on the Petro-Canada Sullivan Creek sour gas project. Petroleum engineering experts are scheduled to testify January 20 - 23 on the proposal for 11 new sour gas wells and construction of a gathering system, field facilities and pipeline in the Sullivan Creek area.  Those opposed to the project argue that it threatens a valuable watershed, disturbs native fescue grasslands and takes an unnecessarily intrusive route, among other concerns. Hearings began Nov. 12 and had been scheduled to end Dec. 5.

Excerpted from HighRiverTimes.com.

The interveners argued the project threatens a valuable watershed, disturbs native fescue grasslands and takes an unnecessarily intrusive route, among other concerns.

After almost three weeks of hearings, the application by SCE&G and Santee Cooper to build two more nuclear power plants in Fairfield County still must win the approval of state and federal regulators.  South Carolina Electric & Gas Co. executives and nuclear power expert witnesses testified regarding SCE&G plans to add two reactor units to the V.C. Summer Nuclear Station at Jenkinsville at a cost of $9.8 billion.

The Office of Regulatory Staff serves as a watchdog for ratepayers in cases presented to state regulators but is also charged with looking out for the financial integrity of investor-owned utilities and promoting economic development. Bob Guild, a Columbia attorney who represented the environmental group Friends of the Earth in opposing the nuclear plan, says that representing  both ratepayers and utilities is a conflict of interest.

Fore more, see thestate.com. 

Oklahoma Gas and Electric Company formally notified the Oklahoma Corporation Commission Dec. 12 of its intent to file a rate case early in 2009.  OG&E’s Brian Alford says that providing the notice gives the commission staff time to make workload plans and give them an idea of the types of energy industry experts they may need for the case. okcbusiness.com reports:

The case will proceed through the first half of 2009. If an increase is approved by the Commission, customers would not see it reflected in their electric rates until August 2009 at the earliest.  “Even though we’re still working through the details, we do know that we’ll be asking for an increase. OG&E’s current rates are based on costs experienced in 2004. In the last four years, the cost of doing business has increased dramatically; labor, health care, materials and other expenses are much higher,” he said. “At the same time, we’ve invested more than $700 million in new assets to ensure the reliable delivery of electricity, and those investments are not included in today’s rates.”