Expects

In what was said to be a message for Wall Street rather thanstate energy regulators, PG&E Corp. announced Monday that itssecond quarter results due out July 21 will be lower-than-expectedbecause of continuing delays in getting a decision on its pendinggeneral rate case before the California Public UtilitiesCommission. The company made a similar announcement near the end ofthe first quarter.

Transwestern expects to complete maintenance Thursday on itsTopock Lateral that has been curtailing about 125 MMcf/d ofdeliveries to the PG&E interconnect at Topock, AZ, since June1. However, another phase of work on the lateral will begin Friday,reducing to zero deliveries at Topock to Mojave, SouthernCalifornia Gas and PG&E through June 30. About 400 MMcf/d willbe impacted by the second phase.

Baltimore Gas & Electric expects to see a 65% reduction innitrogen oxide (NOx) emissions this summer as a result of a new gasreburn system installed on two of its coal-fired electricgeneration boilers and the Gas Research Institute is taking credit.

BT Alex. Brown analyst Adam Sieminski said he expects U.S. gasprices to average $2.10/MMBtu this year, which is up 15 cents fromhis previous forecast of $1.95/MMBtu, because of rising demand,declining wellhead deliverability and the falling storage surpluscompared to last year. Sieminski said the tightness in marketfundamentals will peak this winter and carry strong prices throughnext year. He raised his forecast for prices in 2000 to $2.40 froma previous estimate of $2.20.

The Bonneville Power Administration (BPA) has signed up to begintesting 3 KW home fuel cell units which it expects will sweep themarket much like the home computer in just a few years.

PG&E Gas Transmission-Northwest now expects Unit 5-C toreturn to service for June 1 operations, raising Kingsgate capacityto 2,360 MMcf/d. The return of Unit 7-C is scheduled for June 10,with Kingsgate reaching 2,520 MMcf/d.

BT Alex. Brown analyst Adam Sieminski said he expects U.S. gasprices to average $2.10/MMBtu this year, which is up 15 cents fromhis previous forecast of $1.95/MMBtu, because of rising demand,declining wellhead deliverability and the falling storage surpluscompared to last year. Sieminski said the tightness in marketfundamentals will peak this winter and carry strong prices throughnext year. He raised his forecast for prices in 2000 to $2.40 froma previous estimate of $2.20.

While reporting increased earnings overall for both its utilityand unregulated businesses, PG&E Corp.’s first quarter resultsreleased yesterday (May 17) continue to show red ink for its Texasnatural gas operations, trading and energy services businesses.Results were net earnings of 42 cents-per-share, or 37 cents fullydiluted, compared to 36 cents-per-share for the first quarter of1998. Overall, the utility contributed all but three cents to theearnings, compared to 1998 first quarter when it provided 100percent of the earnings.

In a report released yesterday, the Mid-America InterconnectedNetwork (MAIN) said it expects a new peak for power demand in themidwestern NERC region this summer but power supplies should be”significantly improved” compared to the past two summers. The MAINstudy forecasts a peak demand of 48,157 MW this summer, compared to46,824 MW in 1998.