Generation

Expectations of growing power generation load spurred by hotter weather in much of the U.S. early this week extended a cash market rally Friday and got the August aftermarket off to a strong start. Gains for Sunday-Monday flows (prompted by the month-to-month transition occurring Sunday) mostly ranged from about a nickel to a little more than 20 cents, although a couple of flat points sneaked into the overall picture.

Spot prices rode the power generation load-boosting impact of hot weather to further gains Wednesday. With the exception of a couple of flat Midcontinent pipes, quotes were much like the day before in finding a range of about a nickel to nearly 20 cents. The Northeast recorded most of the larger upticks as regional temperatures continued to creep higher.

Even though natural gas-fired electric generation is being spread around the West more than ever, California remains a key market for the expected five-fold increase in daily Rocky Mountain supplies over the next five to seven years, a Houston-based consultant told an energy conference Thursday in Santa Fe, NM.

Even though natural gas-fired electric generation is being spread around the West more than ever, California remains a key market for the expected five-fold increase in daily Rocky Mountain supplies over the next five to seven years, a Houston-based consultant told an energy conference Thursday in Santa Fe, NM.

Falling power generation load in the South, mild to cool weather in northern market areas, and the previous day’s weakness in energy futures added up to a softer cash market Thursday. A few points were close to flat, but most recorded losses ranging from about a nickel to nearly 20 cents. A majority of declines were in the vicinity of a dime.

One of the uncertainties plaguing state energy planners, the retirement of aging electric generation plants, is the subject of a new study by the California Energy Commission (CEC) that is slated to be completed this summer in time for inclusion in the state’s 2004 updated integrated energy resource plan due to the state legislature this fall. A workshop was held in Sacramento Wednesday to set some of the parameters for the study of what is estimated to be between 5,000 and 10,000 MW that could retire by 2009.

Tight financial markets, a lack of new gas demand, the power generation supply glut and state regulatory concerns have delayed or halted many of the proposed natural gas pipeline expansions announced in the past few years, but even with some high profile cutbacks, U.S. pipeline expansion overall has done “rather well,” according to a new report.

A proposal to substitute nuclear power for gas-fired generation has been laughed out of the northern Alberta oil sands — literally.

A proposal to substitute nuclear power for gas-fired generation has been laughed out of the northern Alberta oil sands — literally.