Lauren Blosse Over-the-Counter Derivatives Legislation

In light of recent attempts by the Administration and Congress to reform over-the-counter (OTC) energy derivatives markets, AGA has penned a letter with the Edison Electric Institute (EEI) and the Electric Power Supply Association (EPSA) expressing concern with some of the proposals in question.  The letter was signed by 70 member companies belonging to the three organizations and was sent to members of the Senate Committee on Banking, Housing, and Urban Affairs and the Senate Committee on Agriculture, Nutrition and Forestry on Friday.

Specifically, the group is asking that any OTC derivatives legislation provide a clear exemption for end-users of OTC derivatives products, such as electric and gas utilities that use OTC derivatives markets to hedge against commodity price risk for natural gas and wholesale electric power. The hedging transactions of end-users do not contribute to systemic risk, and should be exempted from the definitions of swap dealer and major swap participant.

Further concerns are expressed in the letter, which can be found here.

Electricity and gas utilities engage in risk management transactions in the OTC derivatives markets to help ensure stable and affordable rates for their customers.  The organizations stand ready to work with lawmakers to enhance transparency and improve overall market functions of transactions without creating unintended consequences.

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Roger Cooper Hydrogen-powered car article from the Washington Post

I was reading the Washington Post earlier this week and came across this article by Curt Suplee titled, “Don’t bet on a hydrogen car anytime soon.” I sent Curt a message and thought I’d share those same thoughts here to spark some discussion. My message appears below.

Dear Mr. Suplee,

I just read your November 17 piece in the Washington Post on the problems with a hydrogen-powered car. I can’t disagree that this technology still has a long way to go and may end up being a tailpipe dream. But as someone who clearly approaches these issues with a rational scientific perspective I thought you might be interested in another technology that has been developed to strip hydrogen from natural gas without generating the “copious emissions of carbon monoxide and carbon dioxide” associated with the traditional steam reformation technology.

It is a technology developed by a Canadian company, Atlantic Hydrogen, that uses a plasma-arc process to drop carbon out of the natural gas stream as a solid. Earlier this year I visited their facility to look at a demonstration project and came away impressed.

The company’s focus is not on producing pure hydrogen for hydrogen fuel cells but on enhancing the hydrogen content  of natural gas stream to produce a natural gas product (Hydrogen Enriched Natural Gas – HENG) with lower CO2 and NOx emissions. The process itself produces hydrogen without producing CO2 emissions. Here is their website, which includes a paper describing the process and an interesting video.

For the record, they are not a full member of the American Gas Association and neither the association not I have a financial interest in their business.

Also I would like to thank you for addressing the issue of energy loss from energy conversion. That is something that is rarely addressed in the media and can be a source of frustration when discussing energy efficiency issues. At AGA we have been trying to get recognition of this issue because it tends to favor use of natural gas appliances.

While the norm is to look at appliance efficiency and ignore all upstream energy conversion losses, recently the National Research Council of the National Academies of Science studied the issue and recommended that the Department of Energy move to measuring appliance energy efficiency on a full fuel cycle basis.

Attached is their recommendation along with slides we use to illustrate the issue and a joint statement we recently entered into with the Natural Resources Defense Council supporting full fuel cycle energy efficiency measurement.

Thanks again for your thoughtful article.

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Dan Gibson Streamliner is World’s Fastest Compressed Natural Gas Car

We got an email not too long ago about the Streamliner. The Streamliner is a car built by Lessman Racing that runs on compressed natural gas (CNG). But this is no Toyota. Streamliner was clocked at an official speed of 323 miles per hour at the Bonneville Salt Flats in early October making it the world’s fastest compressed natural gas vehicle.

The next step for the team is trying to get the Streamliner over 400 m.p.h. You can follow their progress at the Lessman Racing web site. We’ve also included some engine specs and a picture below.

2433132864a00dc67a1233 Streamliner is World’s Fastest Compressed Natural Gas Car

Engine: Single engine, large-block Ford V-8, 572 cubic inch displacement, turbocharged
Fuel: Compressed natural gas
Transmission: 5 Speed planetary-type, air shifted
Drive Train: All wheel drive, 1:1 ratio, custom design case, electronic traction control
Wheels: Modular 16 x 6 aluminum
Tires: 24 inch diameter special Bonneville LSR tires, spun tested to 750 MPH
Chassis: Tube frame/carbon fiber composite, suspension with +/- one inch travel
Body: Carbon fiber/Kevlar® composite
Brakes: Single rear disc, three parachutes
Weight: 3,000 pounds, “wet” with driver
Dimensions: Approximate, not including vertical stabilizer, 32 inches wide by 26 inches
high (34 inches at top of cockpit) by 28 feet long. Frontal area is 7.25 square feet.
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Chris Hogan Defend my dividend countdown update

As we move closer to a new year, America’s investors are also moving closer to an equally significant milestone.  When we ring in 2010, only three short months from now, we also start a countdown that may very well lead to no celebration at all.

If Congress does not act, on December 31, 2010, investors from all walks of life – whether individual retirees or pension fund managers – will face markedly increased taxes on their dividend income.  In fact, the maximum dividend tax rate will jump from the current 15 percent to almost 40 percent!

091014 dmdupdate Defend my dividend countdown update

I was just in Albuquerque, New Mexico, speaking to more than two hundred investors who are concerned about what the future holds for them.  This event, an annual luncheon for members of the New Mexico Utility Shareholders Alliance, brought home to me the importance of face-to-face advocacy.  I had been invited to talk about this very issue and to let everyone in the room know that someone was looking out for them.

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