Adjust

Expiring December natural gas futures posted a double-digit loss as traders elected to focus on an incoherent weather outlook and adjust positions as the deadline for December trading approached. At the close December had fallen 17.8 cents to $3.364 and January had skidded 14.0 cents to $3.525. January crude oil gained a stout $1.44 to $98.21/bbl.

July natural gas took another small step higher Wednesday as traders adjust to strong interest by algorithmic and fund players and expectations of much-below-normal inventory increases in a government inventory report Thursday.

Natural gas transmission companies have been keeping FERC busy with project paperwork as the industry segment tries to adjust to a marketplace being altered by shale gas.

May futures drifted lower in uninspired trading Friday as traders struggled to get orders filled and had to adjust to a low-volatility rangebound market. At the close May futures had inched lower 0.8 cent to $4.204 and June fell 0.5 cent to $4.264. In contrast, May crude oil bounded higher by $1.55 to $109.66/bbl.

Following state regulators’ request to switch from monthly adjustments, Xcel Energy’s Colorado utility said Thursday it is starting to adjust its retail rates on a quarterly basis to reflect changes in the wholesale cost of natural gas beginning with the fourth quarter. As a result, the utility is projecting that its monthly gas bills during the last quarter will be 7-9% lower than they were in the fourth quarter of 2008.

Citing customer cooperation and warmer weather, Northwest said it will adjust the Overrun Entitlement for all Receiving Parties located north of the Plymouth Compressor Station — including the Grants Pass, Spokane and Wenatchee Laterals — to Stage III (13% tolerance for daily imbalances) effective Tuesday; the entitlement had previously been set as Stage II with 8% tolerance (see Daily GPI, Dec. 5). There is currently no declared entitlement south of Plymouth, Northwest said, but if Receiving Parties south of Plymouth begin drafting excessively, it may declare an entitlement there.

NorthWestern Energy Corp. has filed with Montana state regulators to adjust utility delivery rates for electric transmission/distribution and natural gas storage, transmission and distribution, the company said Tuesday. The utility seeks combined added revenues of $41.9 million.

Southwest Gas Storage Co. has filed an abbreviated application at FERC seeking the go-ahead to adjust the working storage capacity and base gas capacity of its North Hopeton storage field in Woods County, OK.

Southwest Gas Storage Co. has filed an abbreviated application at FERC seeking the go-ahead to adjust the working storage capacity and base gas capacity of its North Hopeton storage field in Woods County, OK.