August

Declining availability of hydroelectric generation in the West and the larger than normal discount for natural gas compared to Gulf Coast distillate fuel, propane and NGLs will contribute to the narrowing of the storage surplus in the weeks before the Nov. 1 start of the winter season, according to analyst Stephen Smith. Nevertheless, Smith is predicting storage stocks on that date (sans hurricane interruptions) will total about 3,200 Bcf, above the 3,030 Bcf average for Nov. 1 over the last 10 years.

FERC closed out the last week in July before its August hiatus with the release late Friday of a draft environmental impact statement (DEIS) that would allow construction of the controversial 4.4 Bcf capacity Weaver’s Cove LNG receiving terminal near Fall River, MA, conditioned on certain environmental mitigation and safety requirements (CP04-36).

FERC closed out the last week in July before its August hiatus with the release late Friday of a draft environmental impact statement (DEIS) that would allow construction of the controversial 4.4 Bcf capacity Weaver’s Cove LNG receiving terminal near Fall River, MA, conditioned on certain environmental mitigation and safety requirements (CP04-36).

Stopping the rally from last week at least temporarily, August natural gas futures on its way towards expiration dropped 17.7 cents on Monday to close at $5.957. The drop almost erased last Thursday’s 22.1-cent rally, which was sparked by the first bullish natural gas storage report in many weeks (see Daily GPI, July 23).

With what is expected to be a bearish EIA natural gas storage on Thursday, August natural gas futures may have stole a few cents on Wednesday to close at $5.931, up 9.4 cents on the day. Trading on the day was marked with a number of rises and falls, notching a low of $5.86 and a high of $5.95.

El Paso Corp. will have until mid August to file its 2003 annual report, and it received additional waivers on a $3 billion revolving credit facility, which was due to expire on Tuesday, the company announced.

Former Enron CEO Jeffrey Skilling reportedly was taken to a New York hospital last Friday after several people told police he was pulling on their clothes and accusing them of being FBI agents. However, the account was disputed by Skilling’s attorneys, who claim that he and his wife called police after they were assaulted by two people.

The Ohio Consumers’ Counsel (OCC) last week called for a comprehensive investigation by state regulators into whether each of Ohio’s electric utilities is providing the reliable service required under the law. While putting together its 2003 End-of-Year Update on Ohio’s Electric Market, the OCC said it found a number of infractions committed by electric companies.

In the aftermath of the devastating August blackout that hit parts of Canada and the United States, top grid operator officials last week said that reliability coordinators must be able to order actions in real-time during emergency conditions and that this authority has to be clearly defined before problems crop up on the power grid.