Citing the recent “success” of the Dominion East Ohio rate auction in August, the Office of the Ohio Consumers’ Counsel (OCC) said Wednesday it has recommended that the Public Utilities Commission of Ohio (PUCO) implement a wholesale auction in spring 2007 to achieve lower natural gas rates for customers of Columbia Gas of Ohio. For its part, Columbia Gas of Ohio said it is nowhere near sold on the idea.
August
Articles from August
Anadarko Hedges Kerr-McGee, Western Production
In connection with its acquisitions of Kerr-McGee and Western Gas Resources in August, Anadarko Petroleum Corp. has hedged about 75% of the acquired oil and gas volumes through 2008, including hedges existing prior to the acquisitions. Anadarko announced its deal to acquire the companies in June (see Daily GPI, June 26).
Kinder Moves Ahead to Take Company Private
Houston-based transportation giant Kinder Morgan Inc. (KMI) agreed in late August to be bought by a group of investors led by founder and CEO Richard Kinder for $15 billion plus the assumption of close to $7 billion of debt. If it’s successful, it will be the largest-ever private equity takeover of a pipeline company.
Feds Probe BP’s Role in Possible Oil, Gasoline Market Manipulation
The scrutiny of BP plc’s business practices grew in late August when federal investigators announced they are looking into whether the oil major manipulated crude oil and unleaded gasoline markets in 2002, 2003 and 2004. BP already is facing allegations by the Commodity Futures Trading Commission (CFTC) that it manipulated the U.S. propane market in 2004 (see NGI, July 3).
All Points See Drops Measured in Double Digits
Prices saw double-digit declines across the board Monday as temperatures that are fairly moderate for mid-August dominate the near-term weather outlook for many areas. Friday’s 26-cent futures decline also contributed to cash bearishness.
Columbia Gas of VA Sets New Peak Demand Records — in August
Columbia Gas of Virginia topped its winter peak demand record for natural gas in August, reporting its three highest single demand days in its nearly 160-year history. The new peak — the first time it has ever been set in the summer — came on Aug. 2 when a heat wave swept through the eastern half of the country recording temperatures above 100 degrees in many locations.
Futures Remain Range-Bound; All Eyes on Weather
After trading lower than Thursday’s close for the entire morning Friday, August natural gas futures did a complete reversal in the afternoon. After recording a $5.880 low early in the day and a high of $6.150 late in the session, the prompt month ended up at $6.139, up 4.8 cents on the day, but 20.8 cents lower than the previous week’s close.
Cash Adds 10-45 Cents on Warmer Temps, Higher Futures
Cash prices jumped nationwide Monday with gains of 10-45 cents in response to slightly stronger gas futures prices (August was up 8.5 cents), 80-90-degree heat in many major markets, and expectations of higher cooling degree days (CDD) this week. The National Weather Service is forecasting that CDDs will be about 17% above average for the week.
Futures Drop to 21-Month Low as Heat, Storms Remain Nearly Nonexistent
Coming out of the Independence Day holiday weekend, August natural gas futures on Wednesday gave bears further reason to continue celebrating as the contract dropped significantly lower on the lack of hot weather and nearly nonexistent storm activity. After equaling the $5.750 spot month low from May late in Wednesday’s session, the prompt-month closed out the day at $5.765, down 33.9 cents.
El Paso Agrees to Pay $16.8M to Settle Shareholder Lawsuit
El Paso Corp. on Friday agreed to pay $16.8 million to settle a shareholder lawsuit filed in August 2001 that claimed some of the El Paso’s officers and directors breached their fiduciary duties in managing the company’s California operations.