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Amid the “uncertainty” over its interconnection policy, FERClast week clarified its procedures to give all types of electricgenerators, especially new market entrants, a “fair shake” athooking up to the interstate transmission grid.

Amid the “uncertainty” over its interconnection policy, FERCearlier this week clarified its procedures to give all types ofelectric generators, especially new market entrants, a “fair shake”at hooking up to the interstate transmission grid.

A new settlement agreement will give Southern Natural Gas customersan overall 4.5%-5% reduction in systemwide demand charges and lock incontracts for the majority of its transportation and storage capacitythrough 2005. The rate cut is in stark contrast to the substantialrate increases Southern Natural proposed last fall, and it includes asignificant cut in rates for affiliate South Georgia Gas customers(see Daily GPI, Oct. 4).

Relieving technically overbought conditions and following thelead of weaker mid-morning cash prices, traders ushered natural gasfutures off its morning highs yesterday to notch its first down daysince Wednesday, Feb. 23. The April contract lost 3.2 cents at$2.783.

Calgary-based AEC Oil & Gas secured an anchor land positionin the gas exploration fairway of the Mackenzie Delta in theNorthwest Territories. The acquired lands give the partnership ofAEC West Ltd. and Alberta Energy Company Ltd. rights to more than400,000 net acres.

Fueled by positive expiration-day price action last Friday andprodded by continued anticipation of higher prices this summer,natural gas futures shuffled higher yesterday as bulls gave a warmbuying welcome to the new spot contract April. With that boost theApril contract closed up 6.9 cents at $2.686 while the summer stripwas up 5.3 cents at $2.721.

Despite moderating temperatures pervading much of the countryyesterday, gas futures were able to inch higher and take back asmall portion of recent losses as traders positioned themselvesahead of the release of fresh weather and storage news. March andApril contracts closed up 4.5 cents a piece at $2.54 and $2.507,respectively, while the 12-month strip grew 3.3 cents to $2.614.

Natural gas futures were nearly unchanged at the close yesterdayas traders grappled with the conflicting fundamentals of storageand weather. By virtue of its 0.3-cent decline to settle at $2.285,January was the only futures contract month to lose ground. Incomparison, both the February contract and the 12-month strip wereup 0.6 cents for the session to $2.322 and $2.401 respectively.

Florida Gas Transmission Company (FGT) proved last week thatit’s not going to give up its monopoly access to the rapidlygrowing Florida market without a fight. The Citrus Corp. subsidiaryfiled its second pipeline expansion application with FERC in a yearin an attempt to head off competition from several proposedgreenfield pipelines, including Williams Companies’ Buccaneerproject, Coastal’s Gulfstream pipeline and Duke Energy’s Sawgrassproject (see NGI, Oct. 4, and Oct. 19).