Continued

Too little, too late was the apt expression for the futuresmarket yesterday, which continued lower despite what someconsidered to be the most constructive fundamentals yet thiswinter. And so the April contract took a page out of the Marchcontract’s playbook, slipping 3.8 cents to $1.659 amid a tight,6-cent trading range. Estimated volume was high for the usuallyquiet day-after expiration with 65,714 contracts changing hands.

Natural gas prices continued in their march of monotonyyesterday, as neither buyers nor sellers were able to tip the scalein their favor. Flatness ruled as a result, with many pricinglocations unchanged.

Despite a disappointing storage report and continuedabove-normal temperatures across the country, natural gas futuresbubbled higher yesterday as technical traders found good value inprices near the bottom end of the recent trading range. And byadvancing 6.2 cents to settle at $1.837, the March contract notonly washed clean Wednesday’s declines but also positioned itselfback in the middle of the $1.725-925 trading range. Estimatedvolume was a somewhat lackluster 61,716 contracts.

The seesaw battle continued Wednesday in the natural gas pit atNymex, but in contrast to the modest gains posted during tradingMonday and Tuesday, yesterday’s session saw the bears regaincontrol. After opening at what would be its high for the day, theMarch contract drifted 6.3 cents lower to settle at $1.775, just apenny off its low.

It was still freezing and snowy in much of the Midwest andNortheast Thursday, but cash traders continued to bank on anapproaching warming trend that has been ballyhooed since thebeginning of the week. Prices fell by about a nickel to a littleover a dime in across-the-board softness. The Martin Luther KingDay weekend (in which some apparently are getting a half-day offthis afternoon in addition to the actual holiday Monday) added tothe general bearish mood.

Legislation with drop-dead dates for 100% gas and electricderegulation continued to march through the New Jersey GeneralAssembly Friday, as the state senate’s Economic Growth Committeeagreed to send a bill to both the senate and assembly floors for avote on Tuesday. If passed, the bill would force the state’s gasindustry to allow supply competition statewide starting Dec. 31 andstatewide electric generation competition starting Aug. 1. For itto become law, the bill needs to win a simple majority in bothhouses.

Avista Energy, a Washington Water Power (WWP) affiliate,continued its expansion onslaught Thursday by announcing that itacquired Vitol Gas and Electric LLC, a full service energy marketerserving the eastern U.S. Terms of the agreement were not madepublic. The deal is expected to close in early 1999.

Consolidation continued last week among Massachusetts utilities, this time with an electric planning to buy a combination utility in a move that follows the maxim that bigger is better in a deregulated market. Boston Edison parent BEC Energy and Cambridge, MA-based gas and power holding company Commonwealth Energy System plan to merge in a cash and stock deal.

Houston Industries’ Wholesale Energy Group (HI) continued toentrench itself into the western energy market by agreeing with thecity of Casa Grande, AZ, to build a new 500 MW natural gas-firedpower plant. The plant will cost $263 million, and upon completionHI will arrange for the supply of gas and sell the electricityproduced from the plant.