“In the first week of the program, three sites in Louisiana were acquired by the Corps of Engineers by eminent domain. Pipeline right-of-way was similarly acquired; appraisals below industry standards made condemnation necessary. This, however, did not reduce costs or trim start-up time as intended. The associated legal proceedings increased costs and created delay, and condemnation set the stage for political trading between Louisiana and federal officials in Washington, D.C.”
In the first decades of the twentieth century, fears of an imminent exhaustion of oil led to petroleum land withdrawals and the reservation of oil-rich acreage for future military use. Four Naval Petroleum Reserves were set aside between 1912 and 1923. [1] With the discovery of major new oil fields in Oklahoma, Texas, and California in the late 1920s, the new fear – at least for the vested parts of the oil industry – became oversupply.…
The Strategic Petroleum Reserve (SPR) is in play. The 695 million barrel inventory, stored in four storage locations in Texas and Louisiana with a capacity of 713.5 million barrels, never found its purpose; it is still waiting for the third oil crisis (after the 1973/74 Arab Embargo and the 1979 Iranian Revolution). Not surprisingly, the SPR is on the verge of becoming a piggy-bank offset for lawmakers. At $50 per barrel, SPR inventory is worth about $35 billion.
This week, MasterResource reviews the history of state and federal oil (and natural gas) storage regulation and ownership. Part I today is early (pre-SPR) regulation. Part II tomorrow will review the prehistory and beginnings of the SPR.
Part III will examine early problems with the federal storage program; Part IV early fill and financing controversies.…
“If Unit 4 does slip by more than six months, the Company would not be able to collect its current forecast of $522 million in nominal PTCs over the first eight years of the Unit 4 operating life that ratepayers would have otherwise received.”
IN THE MATTER OF: GEORGIA POWER COMPANY’S TWELFTH SEMI-ANNUAL VOGTLE CONSTRUCTION MONITORING REPORT (Docket No. 29849)
Direct Testimony and Exhibits of Philip Hayet on Behalf of the Georgia Public Service Commission, Public Interest Advocacy Staff, June 10, 2015.
IV. PRODUCTION TAX CREDITS (excerpt)
Q. DOES STAFF HAVE ANY CONCERNS REGARDING THE COMPANY’S PRODUCTION TAX CREDIT ASSUMPTIONS?
…A. Yes, Staff points out two concerns that relate to the Company’s Production Tax Credit Assumptions. In their joint testimony, Dr. Jacobs and Mr. Roetger note concerns regarding the Company’s ability to meet its current schedule.