trending Market Intelligence /marketintelligence/en/news-insights/trending/eg0i3b92hzaxxyrkfa3siw2 content esgSubNav
In This List

Tax reform may speed coal retirements; LNG industry needs to revamp model

Podcast

Next in Tech | Episode 49: Carbon reduction in cloud

Blog

Using ESG Analysis to Support a Sustainable Future

Research

US utility commissioners: Who they are and how they impact regulation

Blog

Q&A: Datacenters: Energy Hogs or Sustainability Helpers?


Tax reform may speed coal retirements; LNG industry needs to revamp model

Top News

US tax reform could make it easier for some generators to speed coal retirements

While several coal mining companies have cheered tax reform's effect on their bottom lines, it might give some U.S. utilities a path for closing coal-fired power plants in a way that softens the impact on ratepayers.

With talk of LNG shortage mounting, experts say industry must revamp model

As warnings of a coming LNG shortage mount, energy experts are telling the industry that it must figure out a way to meet buyers' calls for shorter contracts while still satisfying lending requirements in order to bring online new liquefaction capacity.

Coal exec urges more 'clarity and certainty' in federal royalty valuation rules

A coal industry executive is recommending that the federal government provide more "clarity and certainty" in its rules for the payment of federal royalties.

Power

* Eversource Energy is appealing New Hampshire regulators' refusal to grant a siting permit to its 1,090-MW Northern Pass transmission project and sweetened the proposal by adding 75 conditional concessions.

* The New Jersey Board of Public Utilities approved the implementation of Gov. Phil Murphy's executive order on offshore wind, which includes the solicitation of 1,100 MW of capacity.

* Echoing similar requests made recently by some state attorneys general and consumer advocates, the Edison Electric Institute asked the Federal Energy Regulatory Commission to detail how electric utilities should go about adjusting rates to pass on the benefits of tax reform to consumers.

* Exelon Corp.'s Clinton Power Station will remain under increased oversight of the U.S. Nuclear Regulatory Commission, after the agency found that the degraded condition of a safety-related pump has low to moderate safety significance.

* San Diego Gas & Electric Co. has submitted plans with the California Public Utilities Commission to add up to 166 MW of energy storage. The seven projects are intended to provide safety, security and emergency services during power grid outages.

* SunPower Corp. is laying off between 150 workers to 250 workers "to stop the bleeding from the new costs associated with the 30 percent tariff," CEO Tom Werner told The Hill in Washington, D.C.

* The Ontario government has raised C$471 million from the first joint auction of greenhouse gas emission allowances, held Feb. 21, with Quebec and California.

Natural gas/Oil

* The Permian Basin is running out of pipeline to take away natural gas associated with shale oil drilling, meaning producers may soon get just pennies for their million British thermal units, or worse, pay to have gas removed so the oil can flow, a veteran analyst said.

* Exxon Mobil Corp. expects to formally initiate withdrawal from its joint ventures with Russia's Rosneft to conduct exploration and research activities this year. Exxon said it made the decision to exit the JVs in late 2017 "to comply with all applicable laws, rules and regulations" after the European Union and the U.S. imposed sanctions relating to the Russian energy sector in 2014.

* New York and North Carolina utility commissions have become teammates in an appeal of the Federal Energy Regulatory Commission's approval of natural gas transportation rates for three Transcontinental Gas Pipe Line Co. LLC projects.

* Suncor Energy Inc. is seeking the Alberta Energy Regulator approval for its proposed 160,000 barrels-per-day Lewis oil sands project north of Fort McMurray. The company expects to begin construction as early as 2024.

* The U.S. Interior Department's Royalty Policy Committee is recommending that the White House cut offshore drilling royalty rates to 12.5% from 18.75% through 2024, The Hill reported.

* Southern LNG Co. LLC is seeking regulatory approval to export domestically produced and previously imported liquefied natural gas up to an equivalent of 255 billion cubic feet of natural gas on a cumulative basis over a two-year period, the U.S. Office of Fossil Energy said in a notice published in the Federal Register.

* S&P Global Ratings revised its outlook on Veresen Midstream LP to positive from stable on expected cash flow improvement.

* The National Association of State Energy Officials has released its guidance for states on petroleum shortage response planning.

Coal

* Indiana Michigan Power Co. is in the process of switching its 2,600-MW Rockport power plant in Spencer County, Ind., almost entirely to Powder River Basin coal, a spokesman for the American Electric Power Co. Inc. subsidiary said Feb. 27.

* BNSF Railway Co. asked a federal judge to allow the company to intervene in Lighthouse Resources Inc.'s lawsuit against Washington state for blocking a coal export terminal, The Associated Press reported. Five environmental groups also are seeking to to intervene in the case, the AP said.

* South Korea plans to suspend five of its aged coal-fired power plants from March to June to tackle air pollution, Yonhap News Agency reported Feb. 28, citing the Ministry of Trade, Industry and Energy.

Commodities

* The latest quarterly greenhouse gas allowance auction held by the Western Climate Initiative, or WCI, which includes California, Quebec and Ontario, saw 100% of the more than 98.0 million current vintage allowances sell at US$14.61/tonne, or 8 cents above this year's price floor of US$14.53/tonne.

* Following a 1.6-cent retreat to finish at $2.667/MMBtu in the prior session, NYMEX April natural gas futures continued to unwind amid ongoing fundamental pressure overnight ahead of the Thursday, March 1, open and the midmorning release of the weekly storage data.

* Pricing for next-day power could be biased higher Thursday, March 1, on the back of mostly stronger demand forecasts for the close of the workweek. Traders will also focus on natural gas markets for power price direction.

SNL Image

New from RRA

* Revenue requirement changes approved by the Virginia State Corporation Commission under several of Virginia Electric and Power Co.'s generation riders during February 2018 reflect the 9.2% base return on equity adopted by the commission on a generic basis on Nov. 28, 2017, as well as the impacts of the federal Tax Cuts and Jobs Act, which reduced the federal corporate income tax rate to 21% from 35% effective Jan. 1, 2018.

Quoted

"Basically, we have shut offshore production down for three straight years, losing 7 MMbbl/d, while we produce about 10 MMbbl/d out in shales. If we stay on this same track, you are going to see a complete train wreck for oil prices and the general economy," said Peter Miller, executive chairman of DistributionNOW at the Association of Energy Service Companies Annual Winter meeting in San Antonio.

The day ahead

* The following companies will hold their earnings conference calls: NRG Energy Inc. at 8 a.m. ET; QEP Resources Inc. at 9 a.m. ET; Pattern Energy Group Inc. at 10:30 a.m. ET; and Southwest Gas Holdings Inc. at 1 p.m. ET.

* The U.S. Senate Committee on Energy and Natural Resources will hold an oversight hearing at 10 a.m. ET to examine cybersecurity in the nation's critical energy infrastructure.

* The U.S. Senate Committee on Environment and Public Works will hold a hearing at 10 a.m. ET entitled "The Administration's Framework for Rebuilding Infrastructure in America."

* The EIA natural gas storage report is due out today.

* Early morning futures indicators pointed to a lower opening for the U.S. equity markets. To view more SNL equity market indexes, click here. To view more SNL Energy commodities prices, click here.

The Daily Dose is updated as of 7:30 a.m. ET. Some links may require registration or a subscription. S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.