While acknowledging behind the scenes that immediate help fromWashington was unlikely, the California Power Exchange (Cal-PX)last week prepared to put in a bid for a temporary $350 a MWh pricecap as the state suffered through another week of short power andhigh prices.
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AGA Changes Storage Report, Highlights 5-Year Average
In a move that had an immediate bearish impact on the naturalgas market last week, the American Gas Association (AGA) decided tobegin publishing a five-year average of gas storage levels in itsweekly storage report. Since the five-year average is much closerto current levels than last year’s abnormally high working gaslevels, the new information gave the market a much different viewof industry fundamentals. The combination of the new average andlast week’s huge 97 Bcf injection knocked nearly a quarter offAugust futures prices on Wednesday.
Michigan Moves Ahead On Electric Restructuring
Michigan Gov. John Engler has signed into law an electricderegulation utility package which mandates an immediate 5% ratecut for residential customers and gives the state’s Public ServiceCommission (PSC) additional authority to ensure competition existsfor electric services.
Bulls ‘Weather’ Another Early Sell-off
For the fourth session in a row yesterday natural gas futuresopened lower and came under immediate downward pressure as tradersgrappled with warm weather forecasts. However, after notching a$2.81 low during the first hour of trading the December contractwas led higher by a combination of local and trade buying. Theprompt contract finished the day down 7.7 cents at $2.837.
Probe Sought of Southern LNG’s Open Season
FERC has been asked to place an immediate hold on Southern LNGInc.’s applications to reactivate and upgrade its mothballedliquefied natural gas (LNG) storage and send-out facility on ElbaIsland in Georgia, pending the outcome of a probe being requestedinto the company’s open-season procedures.
Probe of Open Season for Elba Island LNG Capacity Sought
FERC has been asked to place an immediate hold on Southern LNGInc.’s applications to reactivate and upgrade its mothballedliquefied natural gas (LNG) storage and send-out facility on ElbaIsland in Georgia, pending the outcome of a probe into thecompany’s open-season procedures.
Environmental Group Supports More Pipes
A major environmental group in New England foresees a “fairlyimmediate” need for expansion of two new pipelines in the regionand for “significant” additional pipe capacity to satisfy thenatural gas demands of power plants that are planned for that area.
Disappointment, Hope in Administration Proposal
The Clinton Administration’s electric restructuring proposalreleased this week faced immediate praise and vilification bylobbyists and legislators. “I appreciate the apparent progress onthe Administration taking a position,” said Sen. Frank H. Murkowski(R-Alaska), chairman of the Senate Committee on Energy and NaturalResources. “But the devil’s in the details-and we don’t yet havethe details since DOE has yet to provide Congress with its specificlegislative proposal.” When that is provided “we can begin holdinghearings on their measure and the other bills before the EnergyCommittee,” he added