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While wellhead prices will be 40% stronger than last winter,high levels of storage and gas imports will keep them under $3 forthe better part of the heating season, the Energy InformationAdministration said in its October Short-Term Energy Outlook. Thereport was published yesterday.

“Other than a 15-cent crash, it’s a fairly quiet market.” That’sthe only comment a Sumas trader had to offer Tuesday other than acouple of price quotes. It appeared the cash market may have onlybeen teasing producers with Monday’s moderate firming afterdouble-digit decreases dominated on Tuesday. Some sources pointedat futures as a source of cash weakness, but most said it was morethe continuing lack of positive fundamental influences that causedmost points to approximately double the screen’s fall of just over9 cents.

Destin Pipeline Co. L.L.C. has beseeched FERC not to suspend itsPart 157 blanket certificate authority for six months, which woulddeny it access to the more streamlined certificate procedures forconstructing projects during that period. Without it, the pipelinewould have to seek Section 7 approval under the Natural Gas Act(NGA) for each project at the Commission.

New cogeneration plants are on the move in California, but theymay not be built fast enough to keep up with growing demand.

Cash prices built further Tuesday on their early-week gains invirtually every market except Northern California. Factors behindthe firmness remained much the same as on Monday: a moderate screenincrease, a “stash it while you can” storage mentality and agradual warming trend in northern market areas. Price movementranged from flat on several Rockies pipes to about a nickel higherat many Gulf Coast and Midcontinent points.

For a while Thursday it looked like August prices would keeprunning higher based on a strong screen, continued heavy powergeneration load and Wednesday afternoon’s super-bullish storagereport. However, the uptrend crested and began subsiding a bit whena late “meltdown” occurred in September futures, sources said.

In order to keep pace with Maryland gas deregulation, WashingtonGas filed a rate plan with the Maryland Public Service Commission(MPSC) last week, proposing a five-year rate freeze and credits oncustomer bills if the company’s return on equity (ROE) exceeds 12%.Washington Gas hopes to have the filing approved this fall.

In order to keep pace with Maryland’s gas deregulation,Washington Gas filed a rate plan with the Maryland Public ServiceCommission (MPSC) yesterday, in which the utility proposed afive-year rate freeze and plan that would result in credits oncustomers’ bills if the company’s return on equity (ROE) exceeds12%. Washington Gas hopes to have the filing approved this fall.

Controversial arrangements between pipelines and marketers -similar to the one awarding Dynegy Marketing and Trade sole controlof 1.3 Bcf/d of the remaining unsubscribed capacity on El PasoNatural Gas – could proliferate if FERC should uncap prices in theshort-term capacity market without first ensuring that adequatesafeguards are in place for pipeline customers, Californiaregulators warned.