Despite the return of hot weather alerts and temporary voltagereductions among Northeast electric utilities Monday, spot gasprices found it tough going to build much further on Friday’smoderate gains. Gas demand was fairly strong, sources said, butnot big enough to boost prices any more than 1-2 cents at citygatesand in the Gulf Coast production area. In fact, several Gulf pointsturned in flat performances.

Meanwhile, the West again followed the script that had beenwritten for it early in the July aftermarket. With weekend OFOs bythe big California LDCs ended, western markets saw big turnaroundsfrom Friday’s price dives.

Electricity generators in the Northeast were being pressed byhigh air conditioning loads Monday, but there was nothing like theurgency emerging from the Independence Day holiday weekend when anumber of utilities reported record power sendouts July 6 and anumber of blackouts occurred. Philadelphia-based PECO Energy saidit set peak demand records both Saturday and Sunday this pastweekend, and was among utilities affected by a PJM Interconnectionorder for a 5% voltage reduction. However, PJM was able to cancelthe voltage order barely two hours after issuing it, and nosignificant power outages were reported. Deliveries in Transco’sZone 6 and Texas Eastern’s M-3 pool were flat to only a couple ofpennies higher, and they’re unlikely to achieve any new gains todaybecause the weather is supposed to turn cooler Wednesday, a gasbuyer in the Northeast said. However, temperatures will heat upagain toward the weekend, he added. Another trader felt Monday’sprices were “sustained” by the heat but not raised much by it.

Midcontinent prices tended to rise a bit higher than in the GulfCoast despite flat Midwest citygates, a marketer said, and theregional warming process will only intensify later this week.Temperatures put Midcontinent numbers back near the lower end ofbidweek ranges (lower to mid $2.10s, that is) Monday, he said.Loads are overwhelmingly electric-based, the marketer continued.”Look at ONG. It has no electric load on it at all and ONG volumesare very light, whereas the Transok/Enogex systems are prettybusy.”

One source had a “gut feeling” that this week’s AGA storageinjection report will be in the 80-100 Bcf range.

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