Administration

The Bonneville Power Administration says that customer demandunder new 10-year wholesale power contracts is so strong that itwill have to purchase power on the open market to augment itssupply. To recover its costs, BPA also proposes to add a 15% chargeonto its wholesale rates going into effect Oct. 1, 2001.

The Energy Information Administration said in its SeptemberShort Term Energy Outlook it is projecting natural gas prices atthe wellhead will increase by about 87% this winter (October-March)compared to last winter. Residential prices for gas are expected torise on average by 27% compared to last year. For the entire year,the average wellhead price for natural gas is projected to be$3.40/Mcf, the highest annual wellhead price on record (ininflation-adjusted terms, it would be the highest annual averageprice since 1985).

The Energy Information Administration said yesterday in itsSeptember Short-Term Energy Outlook it is projecting natural gasprices at the wellhead will increase by about 87% this winter(October-March) compared to last winter. Residential prices for gasare expected to rise on average by 27% compared to last year. Forthe entire year, the average wellhead price for natural gas isprojected to be $3.40/Mcf, the highest annual wellhead price onrecord (in inflation-adjusted terms, it would be the highest annualaverage price since 1985).

The Energy Information Administration warned last week in itsShort Term Energy Outlook that recent natural gas market activity”reveals the backdrop of vulnerability…..to potential supplyshortfalls,” particularly in light of increasing demand from thepower sector and the winter heating season approaching.

The Energy Information Administration warned yesterday in itsShort Term Energy Outlook that recent natural gas market activity”reveals the backdrop of vulnerability…..to potential supplyshortfalls,” particularly in light of increasing demand from thepower sector and the winter heating season approaching.

Frederickson Power acquired a partially built gas-fired 249 MWelectricity generating facility located in Fredrickson, WA from theBonneville Power Administration for $25.1 million. FredericksonPower is a partnership between Westcoast power and EPCOR PowerDevelopment Corporation. “Completion of the Frederickson Powerproject will provide an alternative to existing hydro-electricpower facilities that can not meet increased demand,” saidWestcoast Power President Jeff Meyers. “It will produce energysafely and efficiently with a preferred fuel source which supportsefforts to improve local air quality and addresses climate changeconcerns.” The plant is expected to cost $160 million and has acomercial operation date set for the middle of 2002.

The Department of Energy’s Energy Information Administrationsaid on Friday it is expecting the highest average gas wellheadprices (nominal) in history this year and the highest prices inreal (inflation-adjusted) terms since 1985.

The U.S. Department of Energy’s Energy InformationAdministration said on Friday it is expecting the highest averagegas wellhead prices (nominal) in history this year and the highestprices in real (inflation adjusted) terms since 1985.

The National Oceanic and Atmospheric Administration said in areport issued yesterday that the 2000 hurricane season could be awhopper with 11 or more tropical storms, of which seven or morecould become hurricanes, with three or more classified as major.”The greatest influences in this forecast continue to be theon-going La Nina and a lesser-known climate phenomenon of warmerthan normal Atlantic Ocean temperatures that affect hurricaneactivity over very long time scales,” said NOAA Administrator D.James Baker. “La Nina is defined by cooler-than-average sea-surfacetemperatures in the central and eastern tropical Pacific. Duringlast year’s hurricane season, La Nina was bold, and clearlydefined, and gave forecasters more certainty. This year, La Nina’send is in sight,” Baker said. “Even if La Nina fades by August (asthe current forecast suggests), La Nina’s remnants and otherinfluences will still likely bring more storms than usual,” headded.