December

NYC Spike Again Leads Overall Price Advances

The January aftermarket started out strongly relative to end-of-December numbers, but without straying too far from apparent first-of-month index levels. Nearly all of the swing movement ranged from flat to about 20 cents higher, but gains tended to get much bigger at Northeast citygates, topped off by an advance of more than a dollar at the Transco Zone 6-NYC pool.

January 2, 2002

Dominion East Ohio Customers to See 25% Winter Gas Break

With wholesale gas costs plummeting, Dominion East Ohio Gas said its customers will pay 25% less for natural gas in November, December and January than they paid during the same months a year earlier. Under a gas cost recovery (GCR) decrease filed on Wednesday with the Public Utilities Commission of Ohio (PUCO), Dominion East Ohio sales customers, starting Oct. 26, will pay $5.38/Mcf, down 12.8% from the current $6.17/Mcf and down 25% from the $7.18/Mcf they paid during the third quarter last year.

September 27, 2001

Industry Briefs

El Paso Corp. has hedged almost 75% of its projected natural gas production at a Nymex price of $3.85/Mcf ($3.63/MMBtu) for September through December. Next year, about 60% of its production will be hedged at $4.19/Mcf ($3.95/MMBtu), and in 2003, about 35% is hedged at $4.19/Mcf ($3.95/MMBtu). The Houston-based company expects that its realized natural gas price will be about 30 cents/Mcf less than the Nymex price because of transportation costs and regional price differences. In an earnings update, the company estimated that a 10-cent change in the annual spot price for natural gas in 2002 would result in only a $0.02 per share change in earnings, adding it “remains comfortable with existing earnings guidance” putting it at $3.30/share this year. A 15% earnings increase is expected in 2002. The earnings are in line with First Call/Thomson Financial estimates of $3.33 a share this year and $3.84 in 2002.

August 27, 2001

Industry Briefs

It’s official, last week GPU and UtiliCorp United’s Aquila Energysubsidiary announced that in late December, the companies completedthe transaction that sent GPU International to Aquila Energy for $225million. The sale included the interests that GPU International heldin six independent generating plants and a generating project, whichis currently under development. First announced in October 2000, thefive interests, all in the United States, total approximately 500 MWof capacity (see Daily GPI, Oct. 6,2000). Aquila also receives a 50% interest in the 715 MW project,which is still under development. With this latest deal, Aquila nowowns or controls approximately 4,500 MW of generation underconstruction, in development, or in commercial operation.

January 16, 2001

Illinois Begins Gas Market Probe

As soaring December bills for natural gas use hit the home frontin Illinois last week, city and state officials opened a broadinvestigation into the causes of skyrocketing prices and madeattempts to increase assistance to low-income households.

January 15, 2001

ICC Rules 5-0, Investigations Commence on LDCs

With December natural gas usage bills hitting extraordinarilyhard in Illinois this year, city and state legislators have set outin search of clues as to why gas prices are through the roof.Spurred by the urgings of Gov. George H. Ryan and variouslegislators, the Illinois Commerce Commission voted 5-0 to open aninvestigation into this winter’s natural gas price spikes. The ICCalso directed its staff to put together its final report within 60to 120 days (see Daily GPI, Jan. 10).

January 12, 2001

Natural Gas Issues Heating Up in Illinois

As the December bills for natural gas use hit the home front,city and state officials in Illinois, one of the hardest hit lastmonth, weatherwise, reacted with measures to increase low incomeassistance and investigate the cause of the high prices.

January 10, 2001

January Aftermarket Begins Mostly Above Indexes

End-of-December swing prices rebounded Friday from the week’searlier slide, rising by a dollar or more in many cases but alsofeaturing a few scattered declines. The January aftermarket beganabove first-of-month indexes by varying degrees except atCalifornia/Pacific Northwest points.

January 2, 2001

TCPL Asset Sales at $3 Billion; Not Done Yet

After putting its 50% interest of the Express System crude oil pipeline on the market last December as part of CEO Doug Baldwin’s $3 billion divestiture program, TransCanada PipeLines Ltd. (TCPL) finally found a buyer in Alberta Energy Company Ltd. (AEC) for a net total of $60 million. Included in the sale is TransCanada’s 50% interest in Marquest marketing entities which act as shippers on the system.

October 3, 2000

Transportation Notes

Iroquois extended through Friday an open season for up to 10,000Dth/d of winter-only (December through March) FT from theWaddington receipt point to the Brookfield delivery point. Theservice would commence Dec. 1, 2000 and end April 1, 2003. Iroquoisnoted that Sithe New Boston has right of first refusal for 10,000Dth/d. Call Robin Almond at (203) 925-7274 for information.

April 6, 2000