American

Most cash points rose 1 to 5 cents yesterday on the strength ofa futures rally fired by a bullish American Gas Association storagereport. Traders were in agreement that prices were flat toWednesday until the futures screen picked up in the late morning.

Enron Corp. and the American Public Energy Agency (APEA), aNebraska-based tax-exempt financing conduit for public powerentities, have struck a unique $295 million deal to supply about 32MMcf/d over four years to four municipal electric utilities inCalifornia and Washington.

Enron Corp. and the American Public Energy Agency (APEA), aNebraska-based tax-exempt financing conduit for public powerentities, have struck a unique $295 million deal to supply about 32MMcf/d over four years to four municipal electric utilities inCalifornia and Washington.

The American Gas Association has added its voice to those whowould protect the pocketbooks of current customers and requiresponsors of new pipeline construction to bear the risk of theprojects.

The American Gas Association has added its voice to those whowould protect the pocketbooks of current customers and requiresponsors of new pipeline construction to bear the risk of theprojects.

A survey released yesterday by the American Gas Association of69 gas local distribution companies shows LDCs last winter made ashift to more short-term gas supply contracts. The percentage ofpeak-day gas purchases made under long-term supply agreementsdeclined to 35% in winter 1998-99 from 38% in winter 1997-98, andthe percentage of LDCs with more than half of their peak-daypurchases under long-term arrangements dropped to 38% from 47%during the previous winter. Spot market purchases accounted for 10%of peak-day supplies on average compared to only 5% during theprior winter, AGA said. Storage deliveries comprised 41% ofpeak-day gas supplies.

While the American Gas Association (AGA) report loomed at theend of Wednesday’s trading, moderate temperature forecasts and theeasing of New England and New York electricity jams were enough tocause drops of more than a nickel in the Northeast. The New Yorkcitygate ended the day in the mid $2.50s after ascending to the mid$2.70s on Monday.

American Electric Power and Central and South West Corp. reacheda settlement with FERC trial staff that resolves the market powerand rate issues relating to the pending merger of the twocompanies. Under terms of the settlement, AEP would transfer theoperation and control of its bulk transmission facilities locatedin Indiana, Kentucky, Michigan, Ohio, Tennessee, Virginia and WestVirginia to a regional transmission organization (RTO). Thesettlement also covers rates for transmission services andancillary services and confirms, subject to FERC guidance oncertain elements, that the previously announced generationdivestiture program will satisfy the market power concerns of theFERC staff. Once the merger is completed, the new company will beserve 4.7 million electric customers in 11 states.

The Oklahoma Corporation Commission (OCC) unanimously approvedthe proposed merger of American Electric Power Co. of Columbus, OH,and Dallas-based Central and South West Corp.