Contrary

The market was back at it Friday, acting contrary to logical thinking in some traders’ minds. Eastern points were mostly flat overall, but ranging from mildly softer to more than a nickel higher at a few Northeast citygates despite weather in most areas that didn’t appear to justify relative firmness. Meanwhile, an honest to goodness winter storm was moving eastward into the Rockies, yet numbers were down by a nickel or more at most western points.

Contrary to reports that Devon Energy Corp.’s plans to acquire Mitchell Energy & Development Corp. as well as Anderson Exploration Co. are falling apart as its stock falls, Devon CEO Larry Nichols assuaged investors on Wednesday during a conference call and reaffirmed his company’s commitment to completing both deals. When the deals are consummated — expected within the next three months — Oklahoma City-based Devon would become the largest independent in the United States.

Contrary to reports that Devon Energy Corp.’s plans to acquire Mitchell Energy & Development Corp. as well as Anderson Exploration Co. are falling apart as its stock falls, Devon CEO Larry Nichols assuaged investors on Wednesday during a conference call and reaffirmed his company’s commitment to completing both deals. When the deals are consummated — expected within the next three months — Oklahoma City-based Devon would become the largest independent in the United States.

Contrary to the charges of price gouging in the California market, Duke Energy said Friday its average rates for wholesale power sales over the last 15 months were only $76/MWh, and in the first quarter of 2001 rose to only $136/MWh, both well below average spot market prices for the same periods.

Contrary to the impression left by state policymakers nowanxious for California to buy the state’s three investor-ownedutilities’ portion of the state transmission grid, the overworked,congestion-plagued system has had more than 100 upgrade projectstotaling more than $1 billion under way in the past three yearssince the state-chartered independent operator (Cal-ISO) assumedcontrol of the private-sector assets. The utility owners havecontinued to foot the bill for the upgrades and expansions.

Despite FERC findings to the contrary, California Gov. GrayDavis and top officials at the state’s investor-owned utilities(IOUs) are far from convinced that out-of-state electricitysuppliers didn’t act illegally this summer, causing the huge run-upin power prices in the wholesale market.

Despite concerns to the contrary, there will be enough supply ofnatural gas to meet the demands of customers during the next winterheating season, and the current stratospheric gas prices aren’tgoing to become a “permanent” fixture in the market, according tothe American Gas Association, which represents gas utilities, andthe Natural Gas Supply Association, which represents majorproducers.

Despite concerns to the contrary, there will be enough supply ofnatural gas to meet the demands of customers during the next winterheating season, and the current stratospheric gas prices aren’tgoing to become a “permanent” fixture in the market, according tothe American Gas Association, which represents gas utilities, andthe Natural Gas Supply Association, which represents majorproducers.

The Northeast differentiated itself from the rest of the marketyet again yesterday. Contrary to Friday’s results when manyNortheast points gained more than 20 cents, however, theNortheast’s attention-grabbing price activity yesterday felldecidedly on the bearish side as Transco Zone 6-NY fell $1 andTetco M3’s average dropped from the high $3.20’s to $3.