Conditions

Assuming that weather conditions stay consistent with the 1970-1999 average, and oil prices continue to moderate, Energy and Environmental Analysis Inc. (EEA) expects natural gas prices at the Henry Hub for July to average $3.28/MMBtu, and $3.07/MMBtu for the remainder of the 2001 gas storage injection season. The research firm said it expects working gas in storage to reach 3.2 Tcf by the start of the winter heating season, higher than the 3.03 Tcf in 1999 and 2.66 Tcf in 2000.

Faced with severe drought conditions and skyrocketing wholesale electricity market prices, the Bonneville Power Administration (BPA) on Monday warned that it may be forced to increase wholesale rates by 250% or more after Oct. 1, unless the region’s retail utilities and large industrial customers step up to the plate and agree to slash energy use within the next 60 days.

Citing improved linepack and operating conditions, Florida Gas Transmission lifted Friday an Overage Alert Day notice.

After a trifling one-day, 4-cent price rally Tuesday, natural gas futures continued lower on the path of least resistance yesterday both before and after the release of fresh storage data. At $4.202, the June contract closed at its lowest level since Nov. 2, 2000, down 7.7 cents on the day.

Saying linepack and operating conditions had improved, Florida Gas Transmission did not extend an Underage Alert Day notice beyond Tuesday.

Citing “a change in market conditions since its filing,” CMS Oil & Gas Co., a subsidiary of CMS Energy Corp. filed on Friday with the Securities and Exchange Commission (SEC) to withdraw its IPO, which was filed with the commission on November 22, 2000. The company had expected to raise approximately $300,000 from the IPO, yet it had not set a price per share or the amount of shares it would put on the market. Nor did the company’s November filing list what percentage would be retained by the parent company. CMS Oil & Gas was to be listed under ticker symbol “CGS.”

Faced with severe drought conditions and skyrocketing wholesale electricity market prices, the Bonneville Power Administration (BPA) last week warned that it may be forced to increase wholesale rates by 250% or more after Oct. 1, unless the region’s retail utilities and large industrial customers step up to the plate and agree to slash energy use within the next 60 days.

Citing improved operating conditions, Tennessee lifted an OFO Balancing Alert Monday. The OFO had taken effect Saturday (see Daily GPI, April 9).

FERC last week granted certificates, subject to conditions, toCentral New York Oil and Gas Co. (CNYOG) to proceed with theconstruction of its Stagecoach storage project and to Tennessee GasPipeline to build a lateral connecting its system with the storagefacility.