Later

With incentives to ink a national contract later in the year,Sempra Energy Solutions has announced a “multi-million-dollar,one-year” energy services contract for the California operations ofPETCO Animal Supplies Inc., one of the leading national pet foodand supplies retailers with about $750 million in annual revenues(1997). Both Sempra and PETCO are headquartered in San Diego. Nationally, PETCO’s annual electricity bill alone exceeds $10million, according to Ken Moss, energy manager for the pet supplychain, which is rapidly expanding with new, larger(15,000-square-foot) retail outlets that now cover 36 states, withenergy coming from more than 100 different gas and electricdistribution utilities. Natural gas nationally accounts for about10% of the chain’s annual energy load. Water is a much smallerportion, Moss said.

The Natural Gas Supply Association (NGSA) and the CanadianAssociation of Petroleum Producers (CAPP) will sponsor a majorconference later this month to review the status of North Americangas supply and demand.

For municipal gas buyers, the stars are lined up just right for striking a deal on supply. Low interest rates on municipal bonds and low gas prices have led to a rash of long-term prepaid transactions.

About 80 electric-related companies are due to respond laterthis week to FERC inquiries aimed at determining whether marketmanipulation was a contributing factor to the wild price gyrationsin the Midwest electricity market in late June.

Cash prices finally turned downward Thursday, a day later thanseveral sources had expected. Even with the futures screen staginga modest rally, cash traders were unable to ignore the previous twodays’ weakness in the Nymex pit, the continuing lack of weatherfundamentals and yet another bearish storage report that once againemphasised how close injection demand is getting to disappearing.

The Federal Energy Regulatory Commission last week announced itwill hold a symposium later this month to address reform of itscomplaint procedures.