Evident

Signs of a recovery in fixed-price reporting in the natural gas market were evident in the recent March bidweek gas trading period as the number of fixed-price deals reported to Natural Gas Intelligence jumped 9% from the previous month to 1,951 transactions. Total transactions have soared 41% in the last five months, while total gas volumes reported have jumped 36% over the same period to about 12.1 Bcf/d. That compares with only 3.9 Bcf/d at its low point in November 2002.

When natural gas prices retreated from a peak in May 2003 there were signs that “switching-capable” industrial customers were returning to natural gas, according to Raymond James’ latest “Stat of the Week.” And, along with falling gas prices, the rise in price of emissions credits likely will give industrial consumers even more incentive to switch to gas.

When natural gas prices retreated from a peak in May 2003 there were signs that “switching-capable” industrial customers were returning to natural gas, according to Raymond James’ latest “Stat of the Week.” And, along with falling gas prices, the rise in price of emissions credits likely will give industrial consumers even more incentive to switch to gas.

Although its agenda has had few major energy items, the extreme delays that seem to surround many issues before the California Public Utility Commission (CPUC) in recent months have caused a new informal alliance of old and new members from different political parties. The newest and most controversial CPUC member, Michael Peevey, an economist, former utility senior executive and energy services multi-millionaire entrepreneur, has been unequivocal in chiding CPUC President Loretta Lynch for holding items too long for ostensible legal reasons or incomplete facts.

The California Public Utility Commission’s (CPUC) newest member and fourth Democratic appointee, Michael Peevey, joined in a new coalition majority Thursday on a narrow (3-2), politically charged vote to make the CPUC’s earlier suspension of retail direct access effective on the date of the original decision, Sept. 20. The vote derails the CPUC president’s desire to make the suspension retroactive to July 1 and may have implications for future issues facing the regulators.

In the hodgepodge of trading for split weekend periods Friday,little trend was evident other than the October aftermarket wasstarting out below indexes in nearly all cases. However, a fellownamed Keith could play a large part in reversing the generallysofter market as early as today.

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.