Huge

Judging from the huge dip in futures prices yesterday, themarket apparently didn’t get wind of a new, more bullish hurricaneseason forecast by renowned hurricane prognosticator Dr. WilliamGray and his team of soothsayers at Colorado State University.

From gas and power to clean air credits, bandwidth and plastics,you name it, and EnronOnline now sells it, but out of the plethoraof commodities now trading on the site worldwide, North Americannatural gas still tops the list of most actively traded.

In sharp contrast to falling prices in all other areas,Northeast citygates were moving higher Tuesday. By far the mostdazzling performance came from Transco deliveries into New YorkCity that spiked by about a dollar above $4, much as they had onNov. 30. Unlike the end of November, when Transco Zone 6-NYC quotespeaked at $4.75, Tuesday’s top end hit $5.05.

Consolidated Edison Inc. (ConEd) announced the purchase ofNortheast Utilities (NU) last week, creating a huge utility withover five million electric and 1.4 million gas customers in NewYork and New England. ConEd expects the $7.5 billion transaction tobe completed in 12 to 18 months.

Consolidated Edison Inc. (ConEd) announced the purchase ofNortheast Utilities (NU) yesterday, creating a huge utility withover five million electric and 1.4 million gas customers in NewYork and New England. ConEd expects the $7.5 billion transaction tobe completed in 12 to 18 months.

It seems like a safe bet that early this week nobody could havepredicted big price increases anytime in the near future. Themarket’s bearish feeling at the time was palpable. But in somethingclose to a mirror image reversal of Tuesday’s big declines, tradersused an awesome display of might by futures to send cash priceshigher by a dime or more across the board Wednesday.

Vastar Resources had a far better year in the field than it didin the commodity marketplace, reporting first-quarter 1999 netincome of $19 million, down from $48 million during the firstquarter of 1998. However, Vastar achieved a 24% increase inproduction and continued exploratory success, and is predictingbetter times ahead.

Vastar Resources had a far better year in the field than it didin the commodity marketplace, reporting first-quarter 1999 netincome of $19 million, down from $48 million during the firstquarter of 1998. However, Vastar achieved a 24% increase inproduction and continued exploratory success, and is predictingbetter times ahead.

In a rare move that eliminates huge legal costs, Kern River GasTransmission has submitted to FERC a negotiated settlementagreement on its rate design prior to the start of a general ratecase (RP99-274). The agreement has the approval of all of itsshippers. Kern’s general rate case was scheduled to begin thismonth.