Government

Buoyed by private forecasts that cast doubt on governmentforecasts calling for a warm up, along with several constructivetechnical features, natural gas futures erupted higher yesterdaymorning as weak shorts exited their newly acquired positions. TheFebruary contract finished 77.7 cents higher on the day at $8.966after reaching a high at $9.189.

The average price of electricity in the United States decreasedin 1999ÿfor the sixth consecutive year to the lowest rates since1990.ÿ The total decline in rates since 1994 is 3.6%, according toinformationÿreleased yesterday by the Energy InformationAdministration (EIA) in “Electric Sales and Revenue 1999.”

In an effort to comply with Executive Order 13123, which statesthat government agencies must cut energy use 30% by 2005 and 35% by2010, based on 1985 emission levels, Goodfellow Air Force Baselocated in San Angelo, TX, has entered a 15-year energy savingsagreement with Sempra Energy Solutions (SES).

A new study by the INGAA Foundation on gas infrastructurerequirements warns that the government’s current environmentalgoals may not be reached if regulators and legislators don’t startmaking more of an effort to ensure the required gas infrastructurecan be built to serve a 30 Tcf market by 2010.

If the U.S. government would allow energy companies to drill on more federal lands in the Rocky Mountain states, natural gas production could increase and prices then would fall, according to a report issued last week by the Energy Information Administration (EIA), the U.S. Department of Energy’s statistical agency.

If the U.S. government would allow energy companies to drill onmore federal lands in the Rocky Mountain states, natural gasproduction could increase and prices then would fall, according toa report issued last week by the Energy Information Administration(EIA), the U.S. Department of Energy’s statistical agency.

The Department of Energy’s Office of Policy yesterdayrecommended streamlining the federal government’s process forapproving new natural gas storage capacity and pipelines bound forthe Northeast in an attempt to reduce the region’s dependence onheating oil and prevent a recurrence of price spikes.

Nicor Energy LLC said yesterday that it began supplying 30% ofIllinois’ state-run buildings as of Jan. 1. Under arecently-finalized agreement with the Illinois Department ofCentral Management Services the Nicor-Dynegy partnership willsupply the buildings with 2.8 Bcf during the 18-month term.

While the new Maritimes & Northeast Pipeline is ready toflow, with government approvals on both sides of the border, itwill be sometime later in the month before Sable Island wells areoperational, according to a spokeswoman for the new Nova Scotia toNew England pipeline.