Gives

The trappings of a major press conference made it appear like a long-sought ending, but it was really just the beginning late Monday afternoon when California’s governor and Southern California Edison’s CEO announced a breakthrough after six weeks of talks. The “memorandum of understanding” (MOU) for the sale of Edison’s transmission system and power production to the state is contingent on state regulators and legislators swiftly completing some equally significant steps.

Working to find ways to ease the burden of high gas prices on its constituents, the Georgia Public Service Commission (GPSC) unanimously approved an additional $50 refund for low-income senior citizens on their bills for March. Low-income seniors are already receiving $10 refunds on their January, February and March bills, while all consumers are receiving $14 refunds on their February and March bills.

Working to find ways to ease the burden on its constituents, theGeorgia Public Service Commission (GPSC) unanimously approved anadditional $50 refund for low-income senior citizens on theirnatural gas bills for March. Low-income seniors are alreadyreceiving $10 refunds on their January, February and March bills,while all consumers are receiving $14 refunds on their February andMarch bills.

After tumbling more than a dollar in Monday’s weather-relatedsell-off, the natural gas futures market was uncharacteristicallyquiet yesterday, as light buying in the summer months led to modestgains in the prompt March contract. After two brief forays down tothe $5.62 area, the March contract shuffled higher yesterday astraders looked ahead not only to fresh storage data to be releasedthis afternoon, but also to the summer refill season. At theclosing bell, March was up 5.8 cents at $5.764.

El Paso Energy Corp. announced yesterday that it completed its$24 billion merger with The Coastal Corp. after the Federal TradeCommission accepted a proposed consent order that requires themerger partners to divest their interests in 11 natural gaspipeline and gathering systems in the Midwest, Florida, New Yorkand Gulf of Mexico areas as a condition of the marriage. Seven ofthe soon-to-be-divested assets are located in the offshore.

Generally the cash market failed to find any support from eitherAGA’s big storage withdrawal report Wednesday afternoon or thescreen’s strong push upwards Thursday. With the exception ofupticks at a few scattered points, cash numbers ranged from flat todown nearly a dollar at Transco Zone 6 (NYC). Most of the declineswere between about a nickel and 30 cents.

Without much in the way of fresh fundamental news, natural gasfutures limped lazily lower during the regular open-outcry sessionyesterday after an early foray to the $7.85 level failed to attractadditional buying. With that, the January contract notched itsthird down-day in a row, closing 12.4 cents lower at $7.413.Estimated volume of just 51,593 was evidence of a price move thatlacked conviction, traders observed.

Forget the old nine-to-five, all the action now takes placeafter hours. While that sounds like a seedy radio ad for a happyhour hot spot or club, it is also an apt description of the naturalgas futures market as of late. Wednesday was a perfect example ofthis as prices climbed higher overnight Tuesday and notched a newhigh at $8.80 on the opening of the regular trading sessionWednesday, only to tumble lower for much of the remaining regulartrading session. However, bulls were on the offensive again lastnight as they bid up prices in overnight Access trading once again.As of press time at 7:30 PM (ET), the January contract was at$9.07, 58.5 cents higher than Wednesday’s $8.485 settlement price.

FERC last week awarded a preliminary determination on non-environmental issues to Florida Gas Transmission (FGT) for its latest project to expand its existing 1.4 Bcf/d of transportation capacity by nearly one-third.