Altra Energy Technologies and Quicktrade, operators of rivalelectronic trading systems for natural gas, both announced Mondaythe launch of electronic trading systems for the power market.

Altra has finished beta testing of its Streamline for Power, anew companion product for its Streamline for Gas and will bedemonstrating the real-time trading network at GasMart/Power’98next week in New Orleans.

“The next six to 12 months will make the difference in definingthe major players” in the emerging power market, Altra CEO RustyBraziel predicted. “Success will be determined by the ability toexecute trading strategies effectively and efficiently.” Electronictrading systems are “one of the new tools of the marketplace thatsuccessful players will learn to use.” The low transaction costsfor electronic trades will help with the very thin margins gas andelectric traders are experiencing, Braziel said.

Quicktrade will launch its Power Trading System in May to serve16 hub locations. It is “patterned after our successful Gas TradingSystem which has been in operation for over four years,” said DavidHanson, Quicktrade vice president of marketing. “Marketparticipants have expressed a need for better price discovery andhelp in developing liquidity,” Hanson said, adding “Initialresponse from prospective users has been very positive.”

Quicktrade’s gas system currently serves over 350 users at 140trading points in the U.S. and Canada.

Both systems feature instantaneous on-line transactions andanonymity.

“Traders are in more control of the deal-making with Streamlinefor Power,” said Matt Frye, vice president of electronic trading atAltra. “They can post, withdraw or close on a position at the clickof a button, as well as view offers, bids and transaction historiesat any time.” It also will offer a forward market focus with theability to trade a variety of terms, ranging from out-monthtransactions, down to day trades and the hour ahead market.

Frye said Altra would let the market decide what the tradingpoints would be. On the gas side Altra has been trading at about 35points, but the bulk of the transactions occur at just 20 points.Braziel said about 75 Bcf was traded in March. The gas Streamlinehas about 100 active traders with another two to three hundred lessactive.

Altra, previously a joint venture of Panhandle Eastern andWilliams, was acquired from Duke Energy last December by twoventure capital firms, Battery Ventures and Austin Ventures.

Quicktrade is owned by affiliates of NGC Corp., NICOR Inc. andPacific Enterprises.

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