Intra

Despite some intra-agency sparring over the issue, the Commodity Futures Trading Commission (CFTC) Thursday voted out a proposed interpretive order that prohibits disruptive trading practices in the multi-trillion-dollar swaps market.

Shares of Houston-based Spectra Energy hit a new low in intra-day trading last Monday after the company reported a 39% drop in second quarter earnings. Spectra shares hit their lowest level since the company was created through the spin-off of Duke Energy’s natural gas business (see NGI, Jan. 8).

Shares of Houston-based Spectra Energy hit a new low in intra-day trading Monday after the company reported a 39% drop in second quarter earnings. Shares in Spectra hit their lowest level since the company was created through the spin-off of Duke Energy’s natural gas business (see Daily GPI, Jan. 3).

Although almost two years old and still not implemented, Southern California Gas Co.’s intra-state transmission/storage restructuring as embodied in a so-called “comprehensive settlement” still could be salvaged by state regulators.

Although almost two years old and still not implemented, Southern California Gas Co.’s intra-state transmission/storage restructuring as embodied in a so-called “comprehensive settlement” still could be salvaged by state regulators.

FERC’s proposed rule to limit intra-corporate cash transfers, although a step in the right direction, does not provide a regulated energy subsidiary with a sufficient amount of “insulation” from its cash-strapped parent company to justify awarding the regulated entity a separate credit rating, according to Standard and Poor’s (S&P) credit analyst Todd Shipman. Even if it did provide the insulation, the Commission’s past record of “sluggish response” doesn’t instill much confidence that the agency will actively enforce the rule, he said last week.

FERC’s proposed rule to limit intra-corporate cash transactions, although a step in the right direction, offers regulated energy subsidiaries little in the way of protection from parent companies that are financially strapped, according to Standard and Poor’s (S&P) credit analyst Todd Shipman. And the Commission’s past record of “sluggish response” doesn’t give him much confidence that the agency will actively enforce it, he said.

High intra-day volatility continued at Nymex Tuesday whennatural gas futures came under selling pressure early in the dayonly to rebound late in the trading session to nearly unchangedlevels. Weak cash market prices were the talk of the market in themorning and it wasn’t until after pipeline nomination deadlines at12:30 PM eastern that futures were able to begin to recoup losses.The November contract settled for the day at $2.084, down 0.5 centsfor the day.

Prices for the last day of February were mostly softer Friday,but quotes for the Southwest basins, Rockies and intra-Albertareflected flatness. And Canadian exports into Northwest at Sumas,which had been languishing in the low to mid $1.10s at the start ofthe week, climbed to the $1.30 area. The big exception to Westernfirmness was a fall of about a dime at the Southern Californiaborder in wide-ranging numbers.