Flurry

Following last week’s flurry of state initiatives and an energyroundtable among 10 western governors, California will be busysorting through the details full this week, including signinginitial long-term power contracts, which Gov. Gray Davis haspromised will begin to move the continuing “crisis” into thelonger-term “challenge” mode. In the interim retail direct-accesssales will be suspended among other provisions in the newlegislation.

Amid a flurry of protests from existing storage customers, FERClast week accepted and suspended Natural Gas Pipeline Co. ofAmerica’s tariff proposal to provide a new storage service forpower generation customers, but it made it subject to refund,conditions and the outcome of a technical conference.

Continuing a flurry of activity since its proposed merger withSempra Energy fell through (See related story), KN Energy was at itagain Friday as its marketing affiliate, KN Marketing, announced itwas selected to provide gas and fuel management services to a 600MW power plant in Elwood, IL. KN will supply 10 Bcf/year to thisplant at an undisclosed price. The Colorado-based company will alsomanage the plant’s fuel service, including supplying, balancing andmanaging storage and transportation.

Florida Power Corp. has joined in the flurry of new energyprojects spurred by this summer’s record-setting heat wave, filingplans with the Florida Public Service Commission to accelerate thebuilding of a second generation unit at its Hines Energy Complex inPolk County. The unit will provide additional capability to meetgrowing demand for electricity well into the next century. Thecompany has offered to absorb construction costs for the plant inits current customer rates.

A casual glance at the futures table — its narrow trading rangeand its small daily change — would lead one to believe Wednesdaywas a relatively quiet expiration day at Nymex, during which theAugust contract was ushered off the board at $1.942. ButWednesday’s trading was anything but ordinary. Traders wereinundated by a host of technical and fundamental factors, leadingto “very choppy” trading and heavy volume of 116,428.