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Electric, gas, pipeline and water utilities finally can rest a little easier after a significant decrease in the pace and scale of negative rating activity by credit rating agencies in 2004, Standard & Poor’s (S&P) said in a new report titled “U.S. Utility Downside Rating Actions Moderated Significantly in 2004.”

Electric, gas, pipeline and water utilities finally can rest a little easier after a significant decrease in the pace and scale of negative rating activity by credit rating agencies in 2004, Standard & Poor’s (S&P) said in a new report titled “U.S. Utility Downside Rating Actions Moderated Significantly in 2004.”

“Systematically stronger gas demand,” sparked by a 4-5% increase over the same time last year in base (non-weather-related) power demand, should offset this year’s greater end-of-winter storage stocks, and keep mid-summer gas prices above $5, according to analyst Stephen Smith.

As the battle rages on over shutting in natural gas wells for the purpose of preserving crude bitumen recovery from the Wabiskaw-McMurray formation located in northern Alberta, province regulators revised downward the number of gas wells they believe should be closed.

As the battle rages on over shutting in natural gas wells for the purpose of preserving crude bitumen recovery from the Wabiskaw-McMurray formation located in northern Alberta, province regulators revised downward the number of gas wells they believe should be closed.

With about half of its North American natural gas producers’ first quarter results complete, Lehman Brothers believes U.S. production rose roughly 1.3% sequentially but decreased 2.5% from year-ago levels, while total Canadian production decreased 2.1% sequentially and also 2.5% from 1Q02.

The Philadelphia Gas Works (PGW) Friday filed a request with the Pennsylvania Public Utility Commission (PUC) for an overall decrease in rates of $32 million/year from the level of rates that went into effect March 1.

Cash prices were mixed on Thursday with most points up or down a few cents but many sources had bearish expectations for Friday because of the 9-cent drop in November futures on Nymex and an apparently bearish storage report.

Finally, some good news: a unit of Williams said Tuesday that firm transportation rates will drop by as much as 36.5% for all original shippers on its Kern River natural gas transmission system beginning Monday (Oct. 1). The lower rates will be implemented under Kern River’s previously approved extended-term rate program. Williams, which developed a strategy to lower rates in response to customer requests as part of its rate-reduction settlement in 1999, projects more rate reductions next May, when the costs and revenues of the 2002 expansion are reflected in rates.