Effect

Florida Gas Transmission canceled an Overage Alert Day notice afterit had been in effect for Wednesday only (see Daily GPI, Jan. 11).

Despite market concerns about the ripple effect of California’senergy crisis on nonutility generators, Calpine Corp. on Fridayincreased its diluted earnings per share estimates for the quarterand year ended Dec. 31 to $0.30 and $1.05 per share, respectively.The company also increased its diluted earnings per share estimatefor this year to $1.25 per share. Calpine’s portfolio consists of50 operating power plants in 15 states totaling 4,900 MW. Calpinecurrently operates 26 power plants throughout northern Californiathat generate over 1,200 MW of power. About 600 MW are sold underFERC approved long-term contracts to Pacific Gas & Electric.The balance has been sold forward in the California market to adiversified portfolio of municipal and non-utility wholesalecustomers with strong credit ratings, the company said.

The fundamental of having snow and/or frigid temperaturescontinuing to pervade most markets was still around, but cashtraders must have been looking at hints that at least a moderatethaw might begin in several areas today. They again sent priceslower by about a dollar or more Wednesday in most cases.

With the Supreme Court decision in effect handing the presidencyto Texas Gov. George W. Bush, speculation has escalated inWashington D.C. over who will be named the next FERC chairman undera Republican administration.

Pacific Gas & Electric had a customer-specific OFO in effectSunday but did not extend it.

Northwest is lifting today the Stage III Declared EntitlementPeriod for the northern half of its system that went into effect lastFriday (see Daily GPI, Oct. 9). However,the pipeline gave warning of the potential for subsequent entitlement,which allows it to impose a new entitlement after the close of theconfirmation process for the coming gas day. In addition, Northwestsaid effective today it will be necessary to limit the Kemmerer (WY)and possibly the Meacham (OR) and/or Green River (WY) Stations toprimary nominations only in order to make space for Northwest to moveClay Basin storage gas to the Jackson Prairie storage facility. Thepipeline explained the situation this way: “Throughout SeptemberNorthwest experienced continuous customer drafting. To compound theproblem, the price difference between Canadian and Rockies gassupplies has been significant, causing Kemmerer throughput to remainat or above capacity. The price difference threatens to continueindefinitely. If the drafting and unprecedented use of maximumKemmerer capacity persists, depleting Jackson Prairie and making ClayBasin unavailable for use in Northwest’s market areas, customersshould be advised that Northwest must continue to use the toolsavailable to maintain system integrity, including entitlement,alternate gas allocation and operational flow orders.”

An Overage Alert Day notice remained in effect Monday until furthernotice for the Florida Gas Transmission system (see Daily GPI, Sept. 25). The tolerance for negative dailyimbalances had been loosened to 15%.

The coming winter season should have little effect on thenatural gas supplies in New England, which, according to oneofficial, now has the “best supply portfolio” ever.

The coming winter season should have little effect on the natural gas supplies in New England, which, according to one official, now has the “best supply portfolio” ever.