Expect

Consultants at Energy Security Analysis Inc. (ESAI) said they expect the U.S. gas market to become the “sink” for any unwanted or spillover global LNG supply in the future, which could mean significant downward pressure on domestic gas prices at certain locations.

Government observers in Ottawa, convinced the North American market has entered an era of tight supplies and high prices, anticipate a steady rise in the value of Canadian natural gas as far ahead as their computer projections can see.

Government observers in Ottawa, convinced the North American market has entered an era of tight supplies and high prices, anticipate a steady rise in the value of Canadian natural gas as far ahead as their computer projections can see.

Consultants at Energy Security Analysis Inc. said they expect the U.S. gas market to become the “sink” for any unwanted or spillover global LNG supply in the future, which means significant downward gas price pressure and a struggle for domestic gas producers. However, not all market experts agree on that assessment. Benjamin Schlesinger, president of Schlesinger and Associates Inc. in Bethesda, MD, said that such fears are unfounded.

Xcel Energy’s trading operations are being targeted for study by Colorado state regulators, who said they don’t expect to find anything wrong. A report last Thursday in the Denver Post said the state utilities commission wants to probe how the trading impacts retail utility customers in the state.

Duke Energy Corp. told employees last week that poor market conditions affecting its merchant energy operations and milder weather that has negatively impacted its North Carolina utility sales will force the company to take additional cost cutting measures this year, including possible job reductions and project delays, in order to meet its earnings per share target of $1.35-60 in 2003.

Duke Energy Corp. told employees this week that poor market conditions affecting its merchant energy operations and milder weather that has negatively impacted its North Carolina utility sales will force the company to take additional cost cutting measures this year, including possible job reductions and project delays, in order to meet its earnings per share target of $1.35-60 in 2003.

The pipeline constrained Rocky Mountain region is less than a month away from getting a major new pipeline expansion, and one other large expansion project is making progress and should be filed with FERC in the next few months, according to company officials.

California customers may expect to collect as much as $3.3 billion in power refunds, slightly more than the $3 billion the state still owes to power generators but up from original calculations of $1.8 billion, under a decision Wednesday by FERC to recalculate its market cap for power sold during the western power crisis in 2000-2001. The refund amount is considerably less than state claims of $9 billion.