Hike

A story, titled Michigan ALJ Rules Against Consumers Energy Rate Hike, that ran in Daily GPI on March 15 contained an error in the second paragraph. Contrary to what the story said, on Dec. 18, 2003 Consumers Energy Chairman Ken Whipple sent a letter to the executive secretary of the Michigan Public Service Commission voluntarily agreeing to limit the utility company’s annual dividend payment to its parent company, CMS Energy, to $190 million in exchange for receiving the interim rate relief requested. NGI regrets the error.

Iroquois Gas Transmission System plans to ask FERC for a Feb. 5 start-up date for its Eastchester Extension that crosses Long Island Sound into New York City, bringing to life a project that has been in the works for nearly four years, a pipeline spokeswoman said. But even before a molecule of gas has flowed, Iroquois is coming under fire for a proposal to double the transportation rates for service on the extension.

Iroquois Gas Transmission System plans to ask FERC for a Feb. 5 start-up date for its Eastchester Extension that crosses Long Island Sound into New York City, bringing to life a project that has been in the works for nearly four years, a pipeline spokeswoman said. But even before a molecule of gas has flowed, Iroquois is coming under fire for a proposal to double the transportation rates for service on the extension.

AmerenUE has received its first delivery rate increase in more than three years and only its third bump since 1987. The Missouri Public Service Commission (MPSC) on Jan. 13 approved a settlement authorizing the new natural gas delivery rates, which will increase the utility’s operating revenues by $13 million annually.

It’s no secret natural gas prices flew through the roof a few years ago and still remain well above the historical ceiling, but few would believe that over the last 41 months gas consumers (residential, commercial and industrial) have paid $111 billion more than they had the previous 41 months.

Seeking to reach a compromise between what it is seeking and what the New Mexico Public Regulation Commission rejected Nov. 3, PNM Resources’ utility subsidiary, PNM, has submitted a revised plan to the commission for increasing delivery rates for the company’s 441,000 natural gas customers in the state.

An industry leader in returns, financial strength and management, Exxon Mobil Corp.’s five-year volume growth at 5% will exceed investors’ 2-3% expectations, but growth acceleration likely will not be visible until 2005, JP Morgan said in a new research report, which lowered the Irving, TX-based major’s rating to “neutral” from “overweight” on Wednesday.

Kinder Morgan Inc. (KMI) reported a 17% year-over-year hike in earnings in the third quarter, driven by strong performance from its general partner, Kinder Morgan Energy Partners LP (KMP), as well as another solid quarter from its fee-based assets. Earnings per share beat the Street by a penny, at 77 cents in the third quarter, up from 66 cents in 3Q02, on net income of $95.6 million, up from $80.4 million a year ago. Cash flow was $130 million in the quarter, and appears to be consistent with KMI’s revised full-year forecast of $530 million. KMI’s original budget was $470 million. KMI’s interest in its master limited partnership contributed $100.3 million of pre-tax earnings, a 14% increase from 3Q02’s $87.9 million. KMP, which also released its quarterly earnings on Wednesday, reported a 10% increase in net income of $174.2 million, or 49 cents per unit, versus net income of $158.2 million, or 50 cents, in 3Q02. Wall Street had forecast KMP’s earnings to average 50 cents for the quarter. At KMI’s Natural Gas Pipeline Company of America (NGPL), earnings rose 4%, to $92.2 million from $88.7 million a year ago. The CEO attributed NGPL’s growth on its ability to successfully re-contract its firm transportation and storage capacity. He added that only 14% of NGPL’s long-haul capacity is scheduled to expire in 2004. TransColorado’s earnings, meanwhile, were up slightly from last year, to $4.9 million versus $4.8 million recorded by KMI for its 50% interest in the same period a year ago.

It’s getting hot again in the Southwest and even chillier in the Midwest and Upper Plains. Those fundamental weather boosts, along with increased interest in storage buying while prices are still relatively low, were enough to generate a rally throughout most of the cash market Monday, despite lingering power outages and/or mild weather dampening demand in the Mid-Atlantic and Northeast.