Influenced

The reliability of the bulk power system for this summer should be adequate, though wholesale electric prices — influenced more by natural gas than anything else — are likely to continue to rise, according to Charles Whitmore of FERC’s Office of Enforcement.

The reliability of the bulk power system this summer should be adequate, though wholesale electric prices — influenced more by natural gas than anything else — are likely to continue to rise, according to Charles Whitmore of FERC’s Office of Enforcement.

Influenced by yet another day of economic concerns and unsupportive weather forecasts, February natural gas futures continued to explore lower price levels on Wednesday, reaching a low of $7.585 before closing out the session at $7.621, down 4.9 cents from Tuesday. While the decline was a far cry from Tuesday’s 32.3-cent massacre, traders are still hard-pressed to locate any supportive fundamentals.

The disparity of U.S. regional wholesale power markets makes it “difficult” to evaluate the degree to which more competition has influenced consumption and investment decisions in generation and transmission, a federal task force said in its final report to Congress last Thursday. It further found that retail power competition has yielded disappointing results.

Strongly influenced by the price of crude oil, Canadian natural gas prices are expected to remain high through 2006, while at the same time, gas production will be flat, according to the latest market assessment by the National Energy Board (NEB).

Despite ample storage, natural gas prices — influenced by crude oil — are expected to average $5.80/Mcf at the Henry Hub this year and $6.60/Mcf in 2006, the Energy Information Administration (EIA) said in its latest monthly Short-Term Energy Outlook released Tuesday. The projection was ratcheted up from the $5.45-$5.75/Mcf annual average for the 2005 to 2006 period that EIA predicted last month.

Despite ample storage, natural gas prices — influenced by crude oil — are expected to average $5.80/Mcf at the Henry Hub this year and $6.60/Mcf in 2006, the Energy Information Administration (EIA) said in its latest monthly Short-Term Energy Outlook released Tuesday. The projection was ratcheted up from the $5.45-$5.75/Mcf annual average for the 2005 to 2006 period that EIA predicted last month.

Without admitting its actions influenced prices in California’s power market, Reliant Resources Inc. and several of its California power generation facilities have entered into a stipulation and consent agreement with FERC to pay $13.8 million for withholding electricity from the state’s market on two days in June 2000.

Without admitting its actions influenced prices in California’s power market, Reliant Resources Inc. and several of its California power generation facilities have entered into a stipulation and consent agreement with FERC to pay $13.8 million for withholding electricity from the state’s market on two days in June 2000.