Hovering

The Energy Information Administration (EIA) sees spot wellhead prices for natural gas, which currently are hovering around $2-$2.20/Mcf, averaging just under $1.90/Mcf for the rest of the year due to a weakened economy, slower industrial demand and bulging inventories. This would be less than half of the spot price that existed during 2001.

A System Overrun Limitation is in effect today for all NorthernNatural Gas market area zones.

The threat of rolling blackouts hovering over California formore than a month became a reality Wednesday when the state gridoperator (Cal-ISO) ordered them, first, for northern California,and later in the day spreading them to the southern half of thestate.

In the midst of a real potential cold weather energy/supplycrisis hovering over the state, the California Energy CommissionWednesday approved a new 500 MW natural gas-fired electricgeneration plant that could help head off shortages in 2002 and twopeaking plants totaling 371 MW that should be online by theupcoming summer of 2001.

With the total number of open positions on its Waha futurescontract hovering under 400, the Kansas City Board of Trade hastaken measures that could signal the end of that contract as itcurrently exists. The exchange said it is in discussions withPG&E-Texas, the owner of the Waha hub, over potentialramifications of a switch to a basis contract tied to NYMEX’s HenryHub futures contract.