Northern Natural’s innovative volumetric rate proposal, whichcould provide customers with a method of better managing weatherrisk, is headed to a technical conference and further FERC andindustry scrutiny.
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SoCal Edison Seeks Better Offers on Power Plants
Under terms of a deal already announced, Southern CaliforniaEdison last week continued shopping its interests in nuclear andcoal-fired generating plants in the Southwest. In play are 1,300MWs for which Edison already has an offer of $550 millioncollectively from Arizona-based Pinnacle West Energy Corp.
Low Storage, Rising Demand Push Forecasts Ever Higher
Better get used to high gas prices, say Lehman Brothers andSalomon Smith Barney, because $3.50/MMBtu is likely to be the normfor a while. In a research note, Robert Morris, Salomon SmithBarney’s energy analyst, said he expects prices to average $3.50during the third quarter and $3.75 during the fourth quarter ofthis year. Meanwhile, Richard Gross, senior vice president ofLehman Brothers Energy Research, said he expects Henry Hub priceswill average $3.30 this year and $3.35 in 2001.
Executives Bullish on Prices, Supply Outlook
The outlook for North American natural gas was “never better”than now, says the top Shell E&P executive. Among the factorsworking in the favor of gas are strong demand from powergeneration, environmental imperatives, integration of the NorthAmerican market, new supply sources and rising prices.
Western Resources Reorganizes Structure
Attempting to better organize its businesses and release hiddenvalue in its operations, Western Resources said yesterday it willseparate its electric utility businesses under a differentcorporate umbrella from its non-electric affiliates. Both companieswill be public entities. The separation is expected occur through avoluntary exchange offer expected to be completed prior toyear-end.
UtiliCorp Leverages Regulated Assets
“Opportunities in the regulated utility business have never beenbetter,” according to UtiliCorp United Chairman Richard C. Green,Jr.
UtiliCorp Leveraging Regulated Assets
“Opportunities in the regulated utility business have never beenbetter,” according to UtiliCorp United Chairman Richard C. Green,Jr.
Entergy and GE Strike $1.9 Billion Turbine Deal
Attempting to better accommodate the burgeoning Gulf Coast powerdemand, Entergy Corp. spent $1.9 billion to purchase 24 GE 7FAadvanced technology gas turbines and four steam turbines from GE,Entergy said yesterday. Delivery is scheduled through 2004. Theagreement includes turnkey installation of the 1,000 MW Freestonepower plant project and long-term service agreements (LTSAs) thatcover all scheduled maintenance for a period of 16 years followingthe start- up of each turbine.
OGE Reactivates Turbines Amidst Power Crunch
In an attempt to better support record-breaking power demand inthe Midwest, OG&E Electric Services (OG&E), an OGE Corp.subsidiary, said yesterday it plans to reactivate two powergenerators at its Mustang Power Plant. The utility is alsoconsidering other enhancement projects, with a goal to add 1,000 MWto its power supply system.
Buy the Forecast; Sell the Weather. Never Worked Better
Even as temperatures were shattering records throughout much ofthe Northeast,sending electricity prices spiking near $1000/MWhTuesday, natural gas futures were hit with a wave of selling tokick off the week. Speculative fund traders, who have been longpositions for almost three months now, were prominent sellersearly. But trade and local selling was not far behind, sending theAugust contract to its lowest level since the middle of April. Theprompt month finished down 9.6 cents at $2.191, after carving out a$2.16 bottom. Estimated volume was a robust 124,967.