Begins

All points were falling Monday in the general absence of severewinter weather except in parts of the Upper Midwest. For a change,the softness was relatively consistent; although California onceagain registered declines larger than most at the border and Malin,it was not nearly as out of step with the overall market as itoften had been since March began. Most of Monday’s drops werebetween 10 and 20 cents.

When electric deregulation begins in Texas next January, thestate’s largest utilities, Reliant Energy Inc. and TXU Corp., mayhold an unfair advantage because they own natural gas distributioncompanies. To level the playing field, the Texas Public UtilitiesCommission is working to amend the Gas Utilities Regulatory Act,and once formal legislation is introduced, the state’s smallerutilities are expected to lobby for its passage.

When electric deregulation begins in Texas next January, thestate’s largest utilities, Reliant Energy Inc. and TXU Corp., mayhold an unfair advantage because they own natural gas distributioncompanies. To level the playing field, the Texas Public UtilitiesCommission is working to amend the Gas Utilities Regulatory Act,and while no formal legislation has yet been introduced, thestate’s smaller utilities will lobby for its passage.

The shakeout in the battle between online energy tradingexchanges has begun, with rumors circulating that at least two ofthe well marketed, visible performers have run out of money and noware scrambling for customers and liquidity. Though no companieshave publicly announced plans to close or merge, insiders say it’sjust a matter of time.

After halting its fourth quarter dividend and requestingemergency help from the state for gas purchases last week, PacificGas & Electric Co. revealed that it also will lay off 325employees immediately and another 675 over the next several monthsto save $180 million.

As soaring December bills for natural gas use hit the home frontin Illinois last week, city and state officials opened a broadinvestigation into the causes of skyrocketing prices and madeattempts to increase assistance to low-income households.

After suspending payment of its fourth quarter dividend of 30cents/share and requesting emergency assistance from the state forbuying natural gas on Wednesday, Pacific Gas & Electric Co.said Thursday it will immediately lay off 325 employees and cutcustomer services to save $180 million. The utility unit ofPG&E Corp. plans to cut another 675 jobs if its cash situationdoes not improve over the next few months, Pacific Gas and ElectricPresident Gordon Smith said in a memo sent to employees onThursday.

The shakeout in the battle between online energy tradingexchanges has begun, with rumors circulating that at least two ofthe well marketed, visible performers have run out of money and noware scrambling for customers and liquidity. Though no companieshave publicly announced plans to close or merge, insiders say it’sjust a matter of time.

End-of-December swing prices rebounded Friday from the week’searlier slide, rising by a dollar or more in many cases but alsofeaturing a few scattered declines. The January aftermarket beganabove first-of-month indexes by varying degrees except atCalifornia/Pacific Northwest points.