Along

In an effort to capture the rewards and pass along savings madepossible by performance-based rates, NIPSCO Industries and its newaffiliate Bay State Gas are combining gas supply operations. TheMidwest and New England LDCs manage firm loads of about 500 MMcf/dand most of that will be procured on the daily spot market in thefuture, said NIPSCO’s Dan Gavito, vice president of corporate gassupply.

The cash market split somewhat along geographical lines againMonday as overall softening grew greater going from West to East.Most Western points were flat to no more than 2-3 cents down, whileEastern declines mostly ranged from around a nickel to a dime.

Those bemoaning the lack of a competitive market for electricityin California should look on the bright side. Things are movingalong, and the process is not finished, said Daniel D. Richard Jr.,senior vice president government and regulatory relations forPacific Gas and Electric.

While deregulation at the retail level inches along at a snail’s pace, the online retail energy marketplace is quietly gaining market acceptance and could be become a real stimulant to competition.

Bombing Iraq seemed as reasonable an explanation as any for whymost cash markets were rising in the neighborhood of a dimeWednesday. Weather was getting a little colder but still relativelymild for this time of year, so it’s not like there’s any big surgein gas demand, a marketer said. The AGA storage report of 49 Bcf inwithdrawals last week, which came too late to affect Wednesday’strading, was approximately in the middle of most expectations andthus neither bearish nor bullish.

Along with disappointing 3Q earnings announced by The WilliamsCos. came an acknowledgement by management that the companycontinues to achieve disappointing results in several of itsbusinesses. With results reduced by energy market conditions and bypre-tax charges and write-downs of about $70 million, or 10cents/share, Williams reported unaudited net income of $32.1million, or 7 cents/share on a diluted basis, for the thirdquarter. This compares to unaudited restated net income of $13.7million, or 3 cents/share, for the same period of 1997, a quarterin which results were reduced by 17 cents/share for the cost ofdebt restructuring.

Along with disappointing 3Q earnings announced by Williams camean acknowledgment by management that the company continues toachieve disappointing results in several of its businesses. Withresults reduced by energy market conditions and by pre-tax chargesand write-downs of about $70 million, or 10 cents/share, Williamsreported unaudited net income of $32.1 million, or 7 cents/share ona diluted basis, for the third quarter. This compares to unauditedrestated net income of $13.7 million, or 3 cents/share, for thesame period of 1997, a quarter in which results were reduced by 17cents/share for the cost of debt restructuring.

Hurricane Georges continued along a path yesterday that revealeda stunning possibility that the Gulf of Mexico could be paid afifth unwelcome visit by a named storm this hurricane season,making 1998 one of the most active in recent memory. And therestill are more than two entire months left for mother nature tobrew up even more trouble. Two more tropical storms are growing inintensity right behind Georges.

A skyrocketing futures screen took cash along with it Monday,with increases of up to a dime or more occurring at many pricepoints. The surge carried some Midwestern citygates at Michigan andChicago back to the plus side of $2 for the first time since earlyAugust.