Commercial

Calpine Corp. reported on Wednesday that it has placed its 525 MW natural gas-fired Westbrook Energy Center into commercial operation. The facility has successfully completed startup and final testing and is available to help meet peak summer power demand throughout the New England Power Pool. Located in Westbrook, ME, Calpine said Westbrook Energy Center will serve consumers in New England. Westbrook is Calpine’s fifth New England facility to successfully enter the region’s power market, significantly expanding the company’s regional portfolio of natural gas-fired combined-cycle generating capacity to a total of approximately 1,230 MW, with an additional 500 MW in late-stage development. In addition to Westbrook, Calpine’s New England portfolio includes the Androscoggin Energy Center in Jay, ME (52 MW net interest), the 251 MW Rumford Power facility in Rumford, ME, the 240 MW Tiverton Power facility in Tiverton, RI, and the 168 MW Dighton Power facility located in Dighton, MA. In addition, Calpine said it is awaiting final permits for the 500 MW Towantic Energy Center to be located in Oxford, CT. All of Calpine’s New England assets are combined-cycle units.

On an emergency basis, California regulators Thursday approved the installation of real-time metering for San Diego Gas and Electric’s 4,700 largest commercial and industrial customers that don’t presently have real time metering as an aid to reducing electricity demand during peak periods this summer.

After gapping lower at the open, natural gas futures turned higher Monday as non-commercial accounts covered shorts initiated in last week’s three-day, 64-cent price erosion. At the closing bell the May contract was 7.8 cents stronger for the session at $5.103.

While power outages were still viewed as an inevitability thissummer in California, a comprehensive legislative, regulatory andcommercial solution to mounting energy debts was less certain lastweek as reports surfaced that creditors might force bankruptcy onthe state’s two ailing utilities.

Amid a steady stream of non-commercial selling, natural gasfutures tumbled lower yesterday morning, renewing fears that themarket may not have reached a bottom and further losses arepossible. Plunging to its lowest level in more than three months,the April contract took the selling on the chin yesterday, falling15.7 cents to close at $5.006. Volume at Nymex was healthy with anestimated 56,626 contracts changing hands.

Buoyed by a massive buying binge by commercial traders who werelong paper positions and short January futures, natural gas futuressoared higher during the last 30 minutes of trading Wednesday,catapulting the market briefly above key resistance at $10.00. Whenall the dust had cleared and the orders tabulated in the data roomat Nymex, the numbers were staggering. During its 20-day tenure asprompt month at Nymex, January gained $3.773 or more than 60% tonotch the highest settlement in the history of the commodity at$9.98.

Cold weather and strong demand in the Northeast forced KeySpanEnergy shut-off supplies to 650 interruptible commercial customerson Long Island on Christmas eve.

Peoples Gas, a subsidiary of Peoples Energy, is expanding itscustomer choice program this September to include up to 82,000small commercial and industrial customers within the City ofChicago. Eligible customers can begin enrolling on Sept. 1 in thecompany’s Choices For You(SM) program.

Large industrial and commercial gas customers came to thefirst-ever “Natural Gas Summit” in Colorado last week looking to beconvinced that enough gas supply — which is being stretched thinthis summer due to high demand from power generation — exists tomeet their needs. Independent and major producers were more thanhappy to oblige.