Degree

In the last four months of 2006, between Sept. 1 and Dec. 29, there were 11.2% fewer heating degree days (HDD) than normal, and the first two weeks of the new year are expected to be 18% warmer-than-normal, lowering the odds for a “normal” cold winter and higher natural gas prices, Stephen Smith Energy Associates noted in a monthly forecast.

Last week’s announcement by Canadian Finance Minister Jim Flaherty of a proposal to tax income trusts shocked many in his country’s oil patch, but soon a degree of calm had returned as it sunk in that existing trusts wouldn’t be affected until 2011. Some even predicted a silver lining of greater fiscal discipline among energy trusts, should the measure pass, while many still found much not to like.

Citing Florida forecasts of 90-degree weather, Florida Gas Transmission issued an Overage Alert Day for market-area customers Thursday. The tolerance for negative daily imbalances was set at 15%.

With 90-degree Florida weather forecasted, Florida Gas Transmission issued an Overage Alert Day Monday for market-area customers; it had a 25% tolerance for negative daily imbalances.

As most of the nation suffered under 90-100 degree heat last week, all seven of the nation’s regional electric transmission grid operators reported record power demand on their systems. On Thursday the ISO-RTO Council, which represents the seven grid operators, reported a new record of aggregated peak power usage of 483,233 MW, up 1.6% from the previous record of 475,717 set last summer.

Citing Florida forecasts of 90-degree weather, Florida Gas Transmission issued an Overage Alert Day for market-area customers Thursday with 15% tolerance for negative daily imbalances.

Florida Gas Transmission issued an Overage Alert Day notice in its market area for Thursday’s gas day, citing forecasts of 90-degree weather in Florida and lower linepack. The tolerance for negative daily imbalances was set at 20%.

Citing forecasts of 90-degree weather in its Florida market area, Florida Gas Transmission declared a new Overage Alert Day Tuesday with 25% tolerance for negative daily imbalances.

Tennessee said it is experiencing hydrocarbon dew point (HDP) temperatures in excess of its 20-degree limit upstream of Station 87 (Portland, TN) due to high levels of hydrocarbons in deliveries into the 500 Line and the limited ability of the Yscloskey Processing Plant to sufficiently process that gas. Targa Midstream, operator of the Yscloskey facility, has informed Tennessee that the plant should be back to full operation by mid to late May. As alternatives to imposing further corrective actions, Tennessee said it is exploring various short-term operational options that may allow continued flows in the affected area in a safe and reliable manner. However, Tennessee asked shippers and producers to consider what steps they may take voluntarily to conform deliveries into the 500 Line, including but not limited to seeking additional processing alternatives such as deliveries to the Toca and/or Discovery processing plants. “Tennessee strongly encourages customers to make these processing arrangements to ensure deliveries into the pipeline system will conform to Tennessee’s posted HDP limit,” the pipeline said. If HDP temperatures are not sufficiently lowered, Tennessee said it will initiate further corrective action to protect operational integrity.