Anticipating

Public Service Co. of New Mexico (PNM) is warning its customers of potentially higher natural gas prices this winter, anticipating a continued steady rise in wholesale costs that the Albuquerque, NM-based combination utility has seen since last spring. Compared to last winter when prices never exceeded 28 cents/therm, PNM said they could range between 35 and 50 cents/therm this winter. The utility said it has hedged against gas price spikes by buying most of its supplies on a longer term, fixed-price basis. The supply portfolio saved its customers about $27 million in the price-spike period of winter 2000-2001, a PNM spokesperson said. Energy prices generally could rise considerably if the winter is colder-than-normal, the utility spokesperson said. And another factor bidding to influence price is the situation in the Middle East. If the U.S. is at war there, prices could be increased substantially. In preparation, PNM is urging it customers to take various energy-saving steps to mitigate against winter price spikes.

Public Service Co. of New Mexico (PNM) this month is warning its customers of potentially higher natural gas prices this winter, anticipating a continued steady rise in wholesale costs that the Albuquerque, NM-based combination utility has seen since last spring. Compared to last winter when prices never exceeded 28 cents/therm, PNM said they could range between 35 and 50 cents/therm this winter.

Anticipating the development of a natural gas pipeline in the Mackenzie Delta Valley to move supplies to the Lower 48, Ensign Resource Service Group Inc. and Gwich’in Development Corp. (GDC) have teamed up in a joint venture to provide drilling and oilfield services in the Northwest Territories. Ensign, based in Calgary, is Canada’s second largest drilling firm, and has given GDC, an aboriginal company, a 51% stake in the deal establishing Gwich’in Ensign Oilfield Services Inc. (GEOS).

Anticipating the development of a natural gas pipeline in the Mackenzie Delta Valley to move supplies to the Lower 48, Ensign Resource Service Group Inc. and Gwich’in Development Corp. (GDC) have teamed up in a joint venture to provide drilling and oilfield services in the Northwest Territories. Ensign, based in Calgary, is Canada’s second largest drilling firm, and has given GDC, an aboriginal company, a 51% stake in the deal establishing Gwich’in Ensign Oilfield Services Inc. (GEOS).

Weekend prices were soft as expected, but probably fell less than many traders were anticipating. Except for sizeable losses of 20-30 cents or more in the Rockies/San Juan and at PG&E-related points, nearly all of Friday’s declines were 15 cents or less, and a majority of those were around a nickel.

Sonat said it planned to implement an OFO Type 3 for sevendelivery groups Sunday and was anticipating it would beallocating/limiting interruptible capacity for the ChattanoogaGroup and North Alabama Group until further notice. Based onweather forecasts and projected demand, it is likely that the OFOand allocations will remain in effect through at least the end oftoday’s gas day, the pipeline said Friday. Nine groups on Sonat’sSouth Georgia system became subject to an OFO Type 22 Sunday.

Anticipating linepack that would exceed its upper-level target,Pacific Gas & Electric issued a customer-specific OFO fortoday.

Anticipating that its joint settlement will be approved by stateregulators by this fall, Sempra Energy’s utility subsidiaries arepushing a new “Customer Choice” campaign designed to increase thenatural gas volumes residential and small business customers buyfrom energy service providers (ESPs). Sempra is stressing to itsutility employees that the increased ESP business cannot beachieved without “major opening up” of the gas markets in thestate.

Anticipating that its joint settlement will be approved by stateregulators by this fall, Sempra Energy’s utility subsidiaries arepushing a new “Customer Choice” campaign designed to increase thenatural gas volumes residential and small business customers buyfrom energy service providers (ESPs). Sempra is stressing to itsutility employees that the increased ESP business cannot beachieved without “major opening up” of the gas markets in thestate.