Before

Those fireworks you may have heard Thursday were Northeastcitygate prices doing their best skyrocket imitations. While therest of the cash market was considerably more mundane with pricesranging from flat to only a few cents higher, Transco’s Zone 6-NYCpool and Algonquin citygates in New England were making eye-poppingdollar-plus jumps.

Like many other industrial operators before it, Duke EnergyServices has found that operating along California’s famouscoastline can be a rocky proposition. Duke has been forced to pullback and reconfigured plans for its Morro Bay power plant along thecentral coast to accommodate local city concerns and is makingpromises to increase the city’s coffers by up to 30% through theplant remodel.

Competition has arrived in Canadian gas transportation, but onlya case that is escalating into a big one before the National EnergyBoard will tell who gets what out of the changed pipeline grid.The battle — now heating up on paper, to be followed by hearingsbeginning Jan. 18 — is over a proposal to establish minimum,”reserve” or floor prices for excess deliveries by TransCanadaPipeLines Ltd.Round one has already been won by the pipeline’scustomers. After receiving strongly-worded protests, the NEBrejected an appeal by TransCanada to adopt floor prices effectiveNov. 1 or the start of the new gas contract year and heatingseason.

Competition has arrived in Canadian gas transportation, but onlya case that is escalating into a big one before the National EnergyBoard will tell who gets what out of the changed pipeline grid.The battle — now heating up on paper, to be followed by hearingsbeginning Jan. 18 — is over a proposal to establish minimum,”reserve” or floor prices for excess capacity on TransCanadaPipeLines Ltd.Round one has already been won by the pipeline’scustomers. After receiving strongly-worded protests, the NEBrejected an appeal by TransCanada to adopt floor prices effectiveNov. 1 or the start of the new gas contract year and heatingseason.

Foothills Pipeline CEO Robert L. Pierce said last week it won’tbe long before Alaskan natural gas is absolutely necessary to meetU.S. demand. And he remains convinced that the long-proposed AlaskaNatural Gas Transportation System (ANGTS) from Prudhoe Bay alongthe Alaska Highway and eventually to Alberta is the best way tomake it happen.

Foothills Pipeline CEO Robert L. Pierce said yesterday it won’tbe long before Alaskan natural gas is absolutely necessary to meetU.S. demand. And he remains convinced that the long-proposed AlaskaNatural Gas Transportation System (ANGTS) from Prudhoe Bay alongthe Alaska Highway and eventually to Alberta is the best way tomake it happen.

Fueled by a steady stream of short-covering, natural gas futuresambled higher for much of the session yesterday before erupting inthe last 30 minutes amid a frenzy of market-on-close buy orders.That enabled the November contract to push through recent highsabove $3.10 and settle up 8.1 cents at $3.092. Strength was equallyimpressive in the new prompt contract, December, which finished up7.5 cents at $3.223. Estimated volume across all contracts washeavy, with 112,119 positions changing hands.

FERC will address the remaining gas policy changes on its platebefore the end of the year, Chairman James J. Hoecker said lastweek, confirming what other commissioners have indicated recently.But some of the side dishes originally on the menu probably willnot show up at the table because most of the industry found themindigestible, Hoecker told attendees at the 55th annual meeting ofthe Interstate Natural Gas Association of America in Aventura, FL.A more market-oriented approach to regulation apparently is a tastethe industry and the Commission will have to acquire over time.

FERC will address the remaining gas policy changes on its platebefore the end of the year, Chairman James J. Hoecker saidyesterday, confirming what other commissioners have indicatedrecently. But some of the main dishes originally on the menuprobably will not show up at the table because most of the industryfound them indigestible, Hoecker told attendees at the 55th annualmeeting of the Interstate Natural Gas Association of America inAventura, FL.