A delay on upstream unbundling continued this week in Oklahomawhere regulators and Oklahoma Natural Gas are in a heated battleover some of the changes ordered by the commission in July. Theutility refuses to begin a competitive bidding process ontransmission and supply service to the state’s major cities. Itfiled an appeal of the unbundling order with the Oklahoma SupremeCourt last week, saying it raised a number of constitutionalissues. The two sides may reach a settlement, but a dispute overabout $11 million stands in the way.
Continued
Articles from Continued
Flatness Reigns for Weekend; Chaco Impact Slight
The cash market continued to muddle around with essentially nodirection for a second straight day Friday, leaving weekend numbersmostly unchanged. The few drops of about a nickel occurred atWestern points-intra-Alberta, Stanfield, Malin and SouthernCalifornia border-and chiefly resulted from the lifting of supplyand/or transportation constraints that allowed more gas back intothe market.
Dynegy Unloads More Processing Assets
Dynegy Inc. continued downsizing its field services operationsyesterday by signing an agreement to sell its 56% interest in the85 MMcf/d Roberts Ranch natural gas processing plant in MidlandCounty, TX, to Duke Energy Field Services, which operates two otherplants in Midland.
Duke Tackles Retail through Alliance with United
Duke Energy Trading and Marketing, L.L.C. (DETM) continued itsstrategy of allying with local direct marketing and energycompanies as a way of tackling the retail market by entering intoan energy management and marketing agreement with United GasManagement of Pittsburgh. DETM plans to support United inaggregating residential natural gas customers in selected areas ofthe country.
Study: Bulk Power Market Grew 15% Last Year
Bulk power transactions in 1997 increased significantly over1996 levels, pointing to the continued emergence of a competitivewholesale power market, according to Metzler Services’ 1997operating data and statistics for the electric utility industry.
Devon Energy Plans to Acquire Canada’s Northstar
The trend of Canadian producer acquisitions by U.S. companiescontinued Tuesday with the announcement that Devon Energy Corp.agreed to acquire Canada’s Northstar Energy Corp. and create anevenly balanced oil and gas producer with 53% of its reserves inthe U.S. and 47% in Canada.
PG&E Energy Services Inks Retail Deal
PG&E Energy Service continued to amass a large collection ofretail supply and services contracts yesterday, adding Lucky Storesand American Drug Stores to a list that includes Safewaysupermarkets, Rite-Aid drug stores, McDonald’s restaurants,Blockbuster stores, ARCO gas stations Neiman-Marcus departmentstores and IBM.
Futures Higher on Technical Buying
The futures market continued to receive strong technicalfollow-through buying on Monday, adding to gains posted last weekthat some analysts feel could be signaling the end to the two-monthdowntrend in natural gas prices.
Retail Gas Competition Shows Some Signs of Life in CA
Retail gas competition is starting to pick up speed inCalifornia despite continued consumer apathy, according to a surveyof the state’s three gas distribution utilities released last week.
Futures Violate Support, Settle Below $2.00
Nymex futures once again were unable to buck the downtrend andcontinued to slip lower yesterday in quiet trade. The July Nymexcontract opened below $2 before breaking through long-term supportat $1.97 only to claw its way back up near the close. July settledat $1.976, down 5.1 cents for the day. In doing so, July posted thelowest level of any prompt contract since January.