Demand

Buoyed by another day of strong demand in the physical market,the futures market trended higher Friday in a choppy, range-boundtrading session. After opening just two pennies above Thursday’slow of $2.67, the September contract rumbled 2.2 cents higher onthe day to finish at $2.745.

Citing significant market area demand, Florida Gas Transmissionissued an Overage Alert Day notice (6% tolerance for daily negativeimbalances) Monday for the system east of Station 12 (Santa RosaCounty, FL). The pipeline will re-evaluate conditions this morningbefore deciding whether to extend the notice.

With retail energy competition around the corner and powergeneration growing by leaps and bounds, Colorado is in need of newgas storage capacity, according to Brandt Energy President MichaelG. Wright.

The increase in prices is primarily attributable to increased demand for electric generation and storage injections.

Once touted as a quick fix for peak demand in the Northeast,salt cavern storage has stumbled over the problem of what do withthe salt that is removed to make the cavern, which appears to beabout as popular as nuclear waste. At this point one project hasbeen delayed and two others appear to have stalled.

Once touted as a quick fix for peak demand in the Northeast,salt cavern storage has stumbled over the problem of what do withthe salt that is removed to make the cavern, which appears to beabout as popular as nuclear waste. At this point one project hasbeen delayed and two others appear to have stalled.

Citing “significant” market area demand, Florida GasTransmission issued an Overage Alert Day notice for Thursday in thearea east of Station 12 (Santa Rosa County in the FloridaPanhandle). The notice carries a 3% tolerance for daily negativeimbalances.

Citing “significant demand” in its market area, Florida GasTransmission issued an Overage Alert Day notice Wednesday. Thenotice carried a 2% tolerance for negative daily imbalances. FGTsaid it was unable to accommodate any market-area increases east ofStation 12 (Santa Rosa County, FL). System conditions will bere-evaluated at 7 a.m. CDT today to determine whether the noticeshould be extended.

While power demand hit record levels throughout the Northeastand power prices rocketed to $850/MWh last week, NRG Energycontinued to position itself as a major generator in thepower-hungry region. The subsidiary of Northern States Power landeda major power generation deal with Connecticut Light & Power ofHartford. NRG is snatching up 2,235 MW of generating capacity fromCL&P for $460 million.