Combination

A combination of rising natural gas prices, the stumbling residential housing market and general economic weakness has led to above-average increases in past-due payments at many local distribution companies (LDC), particularly in the eastern United States, according to Moody’s Investors Service.

As expected, a combination of what some derided as “storm hype,” continuing heavy cooling load throughout the South and much of the West and prior-day futures support resulted in higher prices at virtually all points Wednesday. Only a quarter decline by Kern Delivery in the Arizona/Nevada market area averted across the board gains that included a $10-plus quote.

It seemed rather unlikely but a combination of gradually warming temperatures in some areas and modest prior-day futures support propelled the cash market to gains at nearly all points Thursday. Only a small decline at Cheyenne Hub averted an across the board run of higher pricing and kept mixed daily price movement in play for yet another day.

TransCanada said Tuesday capacity of the Northern Ontario Line has been reduced due to an unplanned compressor outage at Station 58 in combination with a planned line outage at Main Line Valve (MLV)58-59 line 3. Based on operational conditions and nomination levels to eastern markets, IT service was not fully authorized for Tuesday’s gas day, the pipeline said. It added that with “current operational conditions and current or increased nominations levels, there is a possibility that discretionary services may not be fully authorized for the duration of these outages.” The planned line outage at MLV 58-59 line 3 is expected to end April 28. The duration of the Station 58 compressor outage is unknown, TransCanada said, but as of Tuesday it was expected to last until at least Friday and possibly beyond.

Green Bay, WI-based WPS Resources Corp. and Chicago-based Peoples Energy confirmed Thursday that they are talking about a potential business combination. According to the Wall Street Journal, WPS could buy Peoples for about $1.5 billion.

El Paso set an imbalance tolerance of 10% in declaring a systemwide Strained Operating Condition Tuesday. “Due to a combination of supply underperformance and takes in excess of scheduled quantities, linepack is declining at a rate that is not sustainable,” the pipeline said, adding that its Washington Ranch storage facility was on maximum withdrawal. “Performance caps are being applied to supplies that are flowing at less than scheduled quantities. Customers are strongly encouraged to review their transport to ensure that their takes are in balance with their supplies and to ensure their scheduled supplies are performing as expected. If the situation does not improve, the imbalance tolerance will be reduced and a Critical Operating Condition could be declared,” El Paso said.

Fairfax, VA-based consulting firm ICF International has acquired Energy and Environmental Analysis Inc. (EEA) of Arlington, VA, to bolster its energy market, energy technology and environmental advisory services. “The combination of the modeling frameworks of ICF and EEA in the electricity and gas sectors respectively will create a unique analytical platform for integrated energy analyses,” said ICF CEO Sudhakar Kesava. “This is particularly important with the increased use of natural gas and LNG as fuels to generate electric power. In addition, this framework will allow sophisticated analyses of the impacts of evolving greenhouse gas regulations at the state, provincial, and federal levels in North America.” The 27-person EEA consulting team specializes in energy market analyses, modeling, energy technology, environmental advisory services and automotive technology analysis. “ICF’s national and international geographic presence will provide wider outlets for EEA’s well-established products and services, providing new growth opportunities for both companies,” said EEA President Joel Bluestein. “In addition, the combined expertise and analytical tools of the two firms will facilitate the development of new products and services to meet the evolving needs of our existing and future clients.” Bluestein and the other current EEA directors will continue to manage the EEA business within ICF.

Fairfax, VA-based consulting firm ICF International has acquired Energy and Environmental Analysis Inc. (EEA) of Arlington, VA, to bolster its energy market, energy technology and environmental advisory services.

El Paso set an imbalance tolerance of 4% in declaring a systemwide Strained Operating Condition Thursday. “Underperforming supplies in combination with takes that exceed scheduled quantities have significantly reduced linepack,” the pipeline said, adding that its Washington Ranch Storage facility is at maximum withdrawal rates. El Paso said it will place performance caps on nonperforming supplies, and will declare a Critical Operating Condition if the situation does not improve.