January

When electric deregulation begins in Texas next January, thestate’s largest utilities, Reliant Energy Inc. and TXU Corp., mayhold an unfair advantage because they own natural gas distributioncompanies. To level the playing field, the Texas Public UtilitiesCommission is working to amend the Gas Utilities Regulatory Act,and once formal legislation is introduced, the state’s smallerutilities are expected to lobby for its passage.

When electric deregulation begins in Texas next January, thestate’s largest utilities, Reliant Energy Inc. and TXU Corp., mayhold an unfair advantage because they own natural gas distributioncompanies. To level the playing field, the Texas Public UtilitiesCommission is working to amend the Gas Utilities Regulatory Act,and while no formal legislation has yet been introduced, thestate’s smaller utilities will lobby for its passage.

Although you couldn’t tell from rapidly depleting gas storagelevels or lofty gas prices, this winter turned out to be thewarmest on record for the United States, according to a report bythe National Oceanic and Atmospheric Administration. And it was thethird winter in a row in which record warmth cooked the UnitedStates.

With gas and electric utility stocks continuing to probe thedepths after a brief spike in a January fuel-cell frenzy, someobservers and executives are keeping their eyes peeled for the nextseries of corporate takeovers in the industry.

With gas and electric utility stocks continuing to probe thedepths after a brief spike in a January fuel-cell frenzy, someobservers and executives are keeping their eyes peeled for the nextseries of corporate takeovers in the industry.

Northwest reported that since mid-January it has been receiving”unprecedented levels” of liquid hydrocarbons from QuestarPipeline’s Clay Basin storage facility, “culminating in a criticalhigh of 21,000 gallons on Feb. 5.” Northwest has collected thecondensate at its Green River (WY) Compressor Station, but thefilter-separator system there was designed to collect only minimalamounts. Since last Monday, Northwest said, it has physicallytaken approximately 100,000 Dth/d from Clay Basin and was making upthe shortfall by withdrawing gas from Jackson Prairie. Northwestassured shippers it is working with Questar to keep Clay Basinnominations whole, but cautioned that at some point it may berequired “by prudent operations” to refuse gas nominated from ClayBasin.Northwest will provide 24 hours’ notice in such an event,but said Friday there would be no refusals over the weekend.Shippers can help ease the situation by voluntarily reducing ClayBasin nominations to whatever extent possible, Northwest said.

Feeding off January’s late expiration-day rally, the futuresmarket shuffled higher yesterday as local buying slightlyout-matched trade selling in an extremely light trading session.The only notable feature was a late local-led sell-off that trimmedgains into the close. With that, the February contract completedits first day of trading as the spot contract up 2.5 cents to$2.394.

Despite record earnings last year, Coastal Corp. CEO David A.Arledge admitted in January that 1999 would be a “challengingyear.” Coastal began to prepare for that challenge last week bystarting a corporate belt-tightening program that will include awork-force reduction.

As a result of KN Energy’s acquisition of MidCon Corp. in lateJanuary, MC2 said it plans to turn its focus to retail natural gasand electric markets in western states in which its new parent doesa lot of trading.