Addition

Change was in the air right from the outset of natural gas futures trading Wednesday. After opening higher in three out of the last four sessions, gas futures gapped lower at the opening bell Wednesday amid a concert of fund and local selling. However, when it became apparent that last week’s lows in the mid $2.70s were unobtainable, the market reversed its direction and climbed through several key levels of resistance in the last hour of trading. The August contract gained 15.3 cents to close at $3.042, its highest daily settle since July 3. At 151,295, volume was extremely heavy.

Assumed normal weather for next winter and the addition of another 2,400 MW of gas-fired power generation this summer on top of the 1,000 MW last summer should lead to a 6.7% increase in gas deliveries in Michigan this year, the Michigan Department of Consumer & Industry Services said in its semiannual energy appraisal. The department said it expects 905 Bcf of gas deliveries this year.

Williams said it completed a $45 million gathering and processing system upgrade in Wamsutter, WY. The project included the addition of a third cryogenic gas processing unit at the Echo Springs natural gas plant, boosting capacity by about 140 MMcf/d to 390 MMcf/d and liquids extraction from 18,000 b/d to 28,000 b/d. Williams also expanded the pipeline gathering system that brings natural gas into the plant for processing. Capacity on the system was increased from 330 MMcf/d to roughly 400 MMcf/d.

Key Republicans in the Senate, led by Sen. Frank Murkowski (R-AK), reportedly are expanding their options for energy legislation.

In addition to providing about 1,500 MW of new power supply since the outset of summer, Calpine Corp. Tuesday told investors on a conference call that it has also enhanced California’s natural gas resources for the state market and its own operations.

The New York State Public Service Commission has acted to eitherfreeze or decrease the distribution portion of charges to naturalgas customers of Niagara Mohawk Power through Aug. 31, 2003 as partof a multi-year rate and restructuring plan.

In addition to the California investigation, FERC deniedSDG&E’s request for an immediate broad $250/MWh price cap onall electricity sellers in California. The California utility didnot provide evidence that all potential sellers in the state havemarket power, nor did it show why a broad price cap would be anappropriate response, the order said.

Columbia Gas Transmission has signed a multi-year agreement tosupply natural gas delivery service to FirstEnergy’s proposed 425MW power plant addition in Lorain, OH. The agreement is good for 10years.

Columbia Gas Transmission, has signed a multi-year agreement tosupply natural gas delivery service to FirstEnergy’s proposed 425MW power plant addition in Lorain, OH. The agreement is good for 10years.