Cases

All points were on the same price page Wednesday, rising by large amounts in nearly all cases as a polar air mass that had already occupied the Midwest and Plains threatened to spread its heating load influence into parts of the South and Northeast. And although the West will still be mild to warm in the desert Southwest and inland portions of the West Coast states, it has its share of weather-related demand in the Rockies, where Denver is expected to see a second straight low in the high 20s Thursday.

In a significant victory for federal prosecutors who are pursuing other high-profile fraud cases post-Enron, a Houston jury late Thursday convicted former Dynegy Inc. executive Jamie Olis, 37, on six counts of fraud.

The September aftermarket got off to a very weak start in most cases Thursday. Nearly all points plummeted by anywhere from 35 cents to 90 cents Thursday as cooling load continued to shrink and Wednesday’s screen dive of nearly 60 cents applied negative pressure on physical prices.

Despite a host of energy market manipulation cases already on the books, the U.S. Commodity Futures Trading Commission (CFTC) is still finding more work to do in that area. The agency filed a civil enforcement action Wednesday against BP Products North America for allegedly cornering the propane market in February 2004 to drive up prices. BP has denied the charges, saying that “legitimate forces of supply and demand” were the cause of the price increases.

FERC last Thursday issued decisions in four separate natural gas pipeline and storage cases that would expand the interstate gas infrastructure system in the United States.

FERC on Thursday issued decisions in four separate natural gas pipeline and storage cases that would expand the interstate gas infrastructure system in the United States.

Prices kept falling in most cases Wednesday, but the amount of slide was less than Tuesday’s at many points and there were some instances of flat to slightly higher numbers. That raised the possibility of a cash rally Thursday, with high heat levels expected to continue in a lot of areas and following a 30.7-cent screen rebound Wednesday.

Prices were mixed Wednesday, but lower again in most cases. A screen plunge of nearly 40 cents the day before clearly outweighed rising cooling load in some areas in vying to be the primary cash market influence. Continued concern about the potential for running out of storage injection space later this summer or fall also contributed to overall cash softness.

Michigan Attorney General Mike Cox filed testimony on Monday in the gas cost recovery (GCR) cases of Michigan’s four major gas utilities, challenging the gas cost increases proposed for this winter. Cox told the Michigan Public Service Commission (MPSC) that Consumers Energy, Michigan Consolidated Gas, Aquila and Semco Energy should delay their commodity cost increases until after the winter heating season and spread them over 12 months rather than only four.