The winter weather machine was starting to rev up its engines again, with forecasts of lows around freezing or colder extending into most of the South, and the spot market responded with small to moderate increases at a large majority of points Tuesday. The return of industrial load from its greater-than-usual declines over a holiday weekend and Friday’s 7.2-cent uptick by March futures also played supportive roles.
Freezing
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Transportation Notes
Due to Florida forecasts of below-freezing temperatures, Florida Gas Transmission (FGT) implemented an Overage Alert Day (OAD) for market-area customers Sunday with 10% tolerance for negative daily imbalances. The OAD was continued through at least Monday. FGT said it didn’t anticipate scheduling ITS-1 service in the market area for Tuesday’s gas day, and there was the potential for the OAD continuing Tuesday with a much-tighter 2% imbalance tolerance.
Big Rockies Rebounds Lead Advances at Most Points
Prices were up at nearly all points Tuesday despite little appreciable increase in heating load, although lows around freezing or a little less were due to return Wednesday in the northern Rockies. They would join similar conditions already existing in upper New England/upstate New York and parts of Eastern Canada, while most of Alberta and some other sections of Western Canada were expected to bottom out from the upper teens through the mid 20s.
Transportation Notes
Saying near-freezing temperatures were predicted to move into a large part of Florida that night, Florida Gas Transmission issued an Overage Alert Day for market-area customers Friday. The tolerance for negative daily imbalances was set at 25%.
Obama Administration Freezes All Pending Regulations
One of the first official acts of the Obama White House Tuesday was to send an order to all federal agencies and departments freezing pending regulations until they can be reviewed by new administration staff. The list of review no doubt will be topped by the recently published draft proposal for future lease sales in federal waters.
Puget Sound Energy Sets Another Gas Record
The Pacific Northwest’s continued below-freezing temperatures pushed Bellevue, WA-based Puget Sound Energy (PSE) to another record natural gas sendout Friday, surpassing one the utility set earlier in the week. PSE said natural gas demand hit 780,000 MMBtu on Friday, compared to 755,881 MMBtu last Tuesday.
Most Points Softer Despite Widespread Cold in East
Sub-freezing low temperatures either continuing or returning Friday in sections of the Deep South proved insufficient to sustain higher prices in a modest majority of the cash market Thursday.
Transportation Notes
With forecasts calling for near-freezing weather in northern Florida that night, Florida Gas Transmission (FGT) issued an Overage Alert Day for market-area customers Thursday. The tolerance for negative daily imbalances was set at 25%. FGT said it would not interrupt previously scheduled market-area ITS-1 service below the elapsed prorated scheduled quantity.
Cold Snap Continues to Propel Most Points Higher
Prices continued to rise at most points Thursday as frigid temperatures and various types of frozen precipitation (sleet, freezing rain and snow) occupied more and more of the U.S. and Canada. A 32.3-cent spike by January futures on Wednesday gave extra support to Thursday’s cash market.
Most Points Modestly Higher, Rockies Very Soft Again
As a couple of sources had predicted the day before, the cash market remained close to unchanged Thursday in most cases. Freezing lows forecast for Friday morning in much of the East, even into the Deep South, were augmented by Wednesday’s screen rebound in being responsible for modest gains at a majority of points.