Expecting

Officials at Colorado Interstate Gas (CIG) are expecting extremely depressed gas prices and wide basis differentials in the Rocky Mountain region this year to provide enough of an incentive for producers to finally step up to the plate and support an eastern greenfield pipeline project, and possibly the switching of Wyoming Interstate to westbound flow to support demand from Kern River shippers at the Opal hub.

Officials at Colorado Interstate Gas (CIG) are expecting extremely depressed gas prices and wide basis differentials in the Rocky Mountain region this year to provide enough of an incentive for producers to finally step up to the plate and support an eastern greenfield pipeline project, and possibly the switching of Wyoming Interstate to westbound flow to support demand from Kern River shippers at the Opal hub.

Just when it was expecting to see the light at the end of a long tunnel, Millennium Pipeline suffered another setback last week. Although it was able to come to an agreement with the city of Mount Vernon, NY, over a key routing issue, setting the stage for a final green light from FERC after five years of review, pipeline officials ran into trouble pushing the New York State Department’s (DOS) Division of Coastal Resources for a final decision on its route through sensitive Haverstraw Bay on the Hudson River.

Expecting linepack to exceed its maximum target levels over the weekend, Pacific Gas & Electric issued a systemwide high-inventory OFO for Saturday. The order had $5/Dth penalties for positive daily imbalances exceeding a 6% tolerance.

Xcel Energy reported that it is expecting sizeable earnings growth through the next two years while realizing increased savings from the merger that formed the company in August 2000, when Minneapolis-based Northern States Power and Denver-based New Century Energies united (see NGI, Jan. 17, 2000). Xcel Energy CEO Wayne Brunetti reiterated previous statements that the company is growing rapidly due in part to the independent electricity generating company, NRG Energy, in which Xcel holds nearly a 75% stake.

Xcel Energy reported yesterday that it is expecting sizeable earnings growth through the next two years while realizing increased savings from the merger that formed the company in August 2000, when Minneapolis-based Northern States Power and Denver-based New Century Energies merged (see Daily GPI, Aug. 18, 2000). Xcel Energy CEO Wayne Brunetti reiterated previous statements that the company is growing rapidly due in part to the independent electricity generating company, NRG Energy, in which Xcel holds nearly a 75% stake.

Forecasters expecting the long standing storage deficit compared to last year’s levels to be wiped out on Wednesday got their wish. With the winter gas futures months holding attractive premiums for storage arbitrage and gas demand apparently reduced because of high winter prices, an unprecedented series of weekly storage injections over the past five weeks has led to a year-to-year surplus for the first time since January 2000.

With the first week of financial reports for the natural gasindustry in hand, analysts are expecting overall results to be verygood, driven by an extremely cold start to the winter, robustdemand growth, low storage levels and tight supply.

Expecting to grow its unregulated earnings up to 25% a year beginning in 2001, Constellation Energy Group plans to separate its unregulated energy trading and generation group from its regulated entities, including its flagship, Baltimore Gas & Electric Co.