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Millennium Pipeline President David Pentzien said yesterday it ismore evident now than ever before that significant additional capacityis needed to the Northeast. His remarks ran contrary to theconclusions of a recent Energy Information Administration report (seeDaily GPI, May 25), which found onlyabout 840 MMcf/d of additional capacity is needed in the near term incontrast to the more than 2 Bcf/d of capacity that is planned. ButPentzien noted recent market indicators show an undeniable need forlots more supply access.

Better get used to high gas prices, say Lehman Brothers andSalomon Smith Barney, because $3.50/MMBtu is likely to be the normfor a while. In a research note, Robert Morris, Salomon SmithBarney’s energy analyst, said he expects prices to average $3.50during the third quarter and $3.75 during the fourth quarter ofthis year. Meanwhile, Richard Gross, senior vice president ofLehman Brothers Energy Research, said he expects Henry Hub priceswill average $3.30 this year and $3.35 in 2001.

The first-ever broad-based study analyzing finding anddevelopment (F&D) costs by strategy area and cost componentsfor companies operating in the Shelf and Slope areas of the Gulf ofMexico shows that technology plays a key role in determiningcompetitive advantage. Ziff Energy Group, which released the studythis week at the Offshore Technology Conference in Houston,analyzed activity on the Shelf and Slope to 1,500-feet water depth.

As a result of one of the most extensive environmentalinvestigations ever, federal authorities last week filed a stringof lawsuits and other actions against 32 coal-fired utility plantsin the South and Midwest for allegedly failing to installpollution-control equipment when major facility upgrades were made.These actions, they said, contributed significantly to the higherlevels of nitrogen oxide (NOx), sulfur dioxide (SOx) andparticulate matter emissions over the years.

In one of the most aggressive environmental enforcement actionsever, the federal government yesterday filed a series of lawsuitsagainst 32 coal-fired electric utility plants in the South andMidwest alleging that they made illegal modifications to theirfacilities, which resulted in increased nitrogen oxide (NOx) andsulfur dioxide (SOx) emissions over the years.

The Williams Cos. Inc.’s consolidated credit measures have”deteriorated” due to an aggressive capital investment program,ever-widening losses from its communications business and weakenergy prices throughout 1998 and earlier this year, but Fitch IBCAnevertheless gave the company a credit rating of ‘BBB’ basedlargely on the stability of its interstate gas pipelines and thegrowth potential of its diversified energy businesses.

In his first visit ever to FERC, Energy Secretary BillRichardson last week drove home the need for a federal electricityrestructuring bill and the importance for the Commission to have apivotal part in that effort.

In his first visit ever to FERC, Energy Secretary BillRichardson yesterday drove home the need for a federal electricityrestructuring bill and the importance for the Commission to have acritical role in that effort.

While Enron Energy Services signed its largest contract ever inthe third quarter, the business has yet to show a profit. However,the company said strong performance to date all but ensure a profitin the fourth quarter.