In the matchup of East vs. West markets, it was the East by aknockout Friday. While western prices plunged for the thirdstraight weekend, the East relied on existing and predicted hotweather to range from flat to up about a nickel at most points andrealize gains of almost a dime at Northeast citygates. A screenrise of less than a penny was considered a negligible factor inboth regions.

The screen’s late rise Thursday laid a firm foundation for cashtrading Friday, and then the weather predictions drove thingshigher from there, a Northeast-oriented marketer said. A powertrader confirmed strong spikes in regional electric prices due toheat “both in the forecasts and outside traders’ windows.” The NewEngland pool jumped to $580/MWh in the hourly peaking marketFriday, he said, and PJM (Pennsylvania-New Jersey-Maryland plusDelaware) was trading around $120/MWh for today’s transmission.

Chicago citygates don’t seem to be as liquid as they used to be,a Midcontinent source said. “You know a point has become lessliquid when your range on the day [$2.20-21] is only 1 cent, butit’s still exciting.”

To the surprise of absolutely no participant in western markets,both Southern California Gas and Pacific Gas & Electric hadhigh-inventory OFOs in effect for at least Saturday. A number ofsources expect the pattern of weekend OFOs by the big CaliforniaLDCs, begun three Fridays ago, to continue for the foreseeablefuture.

The OFOs are greatly dependent on what kind of power load thereis, and it was fairly weak for the weekend, according to the headof western trading for a major aggregator. The utilities arerunning their systems more tightly than they have in the past andthus are more ready to pull the OFO trigger, he said. However, hedoesn’t think the orders will be as severe or frequent in anothermonth or so. Their recent predictability doesn’t create a tradingadvantage or disadvantage for anybody strategy-wise, the tradingchief said, because “everybody” knows what’s coming.

Western price weakness was topped off by PG&E citygate andSouthern California border declines of over 20 cents. Rockies dropsin the vicinity of a dime were milder. To one marketer, it seemed”like a lot of Rockies gas switched from going west to seeking outMidcontinent/Midwest destinations.”

Two weather services reported a tropical wave over Mexico’sYucatan Peninsula that was weak late last week but could strengthenif it moves over water.

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