Increments

While natural gas futures continue to work lower, the declines are no longer in 50-cent increments. February natural gas chiseled out a new low for the move of $9.130 on Wednesday before settling at $9.238, down 9.8 cents.

With gas prices moving up in $1 increments in the Northeast on Monday in response to the first real blast of winter weather, Philadelphia-based PECO Energy announced several significant improvements in its distribution infrastructure and some adjustments in its supply and gas transportation portfolio this winter. Eric Helt, manager of gas acquisition and planning, said the adjustments are designed to help it guard against price volatility.

With gas prices moving up in $1 increments in the Northeast on Monday in response to the first real blast of winter weather, Philadelphia-based PECO Energy announced several significant improvements in its distribution infrastructure and some adjustments in its supply and gas transportation portfolio this winter. Eric Helt, manager of gas acquisition and planning, said the adjustments are designed to help it guard against price volatility.

Independent oil and natural gas producers scored a big victory Wednesday when House-Senate conferees approved a proposal that would establish a tax credit for marginal oil and gas wells when energy prices drop to low levels as part of the conference report on the broad corporate tax cut legislation (H.R. 4520).

Because Congress has not yet passed a fiscal year 2003 appropriations bill for the Department of Transportation (DOT), the agency’s Office of Pipeline Safety (OPS) said it will assess and collect safety user fees from natural gas and hazardous liquid pipelines based on fiscal year 2002 funding levels for now, and then later in 2003 will assess any increases in the fees that are authorized by lawmakers.

Because Congress has not yet passed a fiscal year 2003 appropriations bill for the Department of Transportation (DOT), the agency’s Office of Pipeline Safety (OPS) said it will assess and collect safety user fees from natural gas and hazardous liquid pipelines based on fiscal year 2002 funding levels for now, and then later in 2003 will assess any increases in the fees that are authorized by lawmakers.

The gas price projections of the ever-bullish analysts atRaymond James and Associates’ are going up in $1.25 incrementsthese days. The company boosted its Henry Hub price forecast to$5.75/Mcf for 2001 from $4.50 in reaction to what it called a”looming crisis” in the gas market. The increase puts RaymondJames’ forecast a whopping $1.62/Mcf more than the Wall Streetconsensus, according to First Call, but still about a quarter shyof the 12-month futures strip.

Citing “seasonal efficiency adjustments,” NOVA said it woulddecrease its target linepack by about 177 MMcf in gradualincrements by May 29.