Both

The domestic natural gas resource base, both proven andpotential, has dropped slightly over the past two years, butthere’s more than enough available and known gas supply to meetU.S. needs well into the middle of the next century, according to anew study released last week by the Potential Gas Committee (PGC).

In separate announcements, Southern Company and PacifiCorptouted their readiness for the year 2000. Both said utilitysubsidiaries are testing systems by setting their clocks forward toreplicate conditions in a year 2000 environment. Generation,transmission and distribution systems are being tested by thecompanies.

The domestic natural gas resource base, both proven andpotential, has dropped slightly over the past two years, butthere’s more than enough available and known gas supply to meetU.S. needs well into the next century, according to a new studyreleased Monday by the Potential Gas Committee (PGC).

In separate announcements, Southern Company and PacifiCorptouted their readiness for the year 2000. Both said utilitysubsidiaries are testing systems by setting their clocks forward toreplicate conditions in a year 2000 environment. Generation,transmission and distribution systems are being tested by thecompanies.

A rate refund, refocusing and early retirement programs, plusboth failed and successful merger costs wiped out PacifiCorp’s 1998earnings of $300 million, leaving the company with a $55 millionloss for the year. In comparison 1997 earnings after special itemswere $641 million; they were $350 million before special items. Thecompany’s refocusing in 1998 and 1999 includes shutdown of itsenergy marketing business, the sale of TPC Corp., and of EnergyWorks, a joint venture with Bechtel, and the closing of its Turkishenterprises.

The question of who – federal or state regulators, or both – hasjurisidiction over small interstate pipeline laterals that directlyserve end-use customers has been left unresolved at the regulatorylevel, and now is poised to be sent to state and federal appellatecourts.

Above-normal temperatures, both outside traders’ windows and intheir weather forecasts, continued to weigh on the futures marketthroughout trading Monday. The February contract gapped lower atthe open as moderate selling prompted the market down 6.4 cents toits $1.714 close. Estimated volume was heavy, with more than 93,000contracts changing hands.

Chevron and Arco both said yesterday they will be chopping $500million from their costs for 1999. “To successfully weather thebusiness conditions of low crude oil, natural gas and commoditychemicals prices, we have to continue to find ways to minimize thecost of operating our business,” said Ken Derr, Chevron’s CEO.

Quotes for late December gas and the January bidweek tended tomove a few cents higher Wednesday. A Gulf Coast trader felt Januarycash had moved up about a nickel “in sympathy with the cold weathersweeping across most of the nation.”