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The benefits of deregulating the electric power industry may be”deferred” — or may not be realized at all — if monopolyutilities are left unchecked to exercise market power in arestructured marketplace, according to an FTC staff report.

Taking a cue from the July contract, which tumbled in anexpiration-day sell-off, August began its tenure as prompt month byslipping lower yesterday morning as traders continued to look pasta bullish storage situation to focus on bearish short-term demandoutlooks. But just like other moves lower in recent weeks,yesterday’s retracement was short-lived and by 11:15 a.m. (EDT)buyers had promoted the near-month back into positive territory onthe day.

Someone pulled the plug on gas futures yesterday, but there’sstill plenty of water left in the tub. The July contract plunged42.5 cents but remained above $4 at $4.063.

Despite the gas futures rally that pushed May prices to contracthighs of $3.087 last Thursday, Susannah Hardesty, president ofEnergy Research and Trading, still expects a higher spike nextmonth, possibly to $3.30 for the near-month contract, asnervousness over strong summer gas and power demand reaches thetrauma stage.

Although gas futures prices could take a short-term dip,possibly below $2.65, followed by a small rebound, by late May,Susannah Hardesty, president of Energy Research and Trading,expects prices to be solidly above $3, maybe as high as $3.30. Andshe’s not alone. Given the significant hype about the increase ingas-fired generation and the surge in peak summer power needs,Cynthia Kase of Kase and Company said this market could soar tounexpected heights.

Stung by a negative financial report from an independentnewsletter that left its stock price down $18/share, or about 17%on Friday, San Jose, CA-based Calpine Corp. reacted quickly Mondayto reiterate its aggressive strategy for developing groups ofgas-fired merchant power plants throughout the U.S. over the nextfive to 10 years. It also said it would continue to grow itsrelated power and gas marketing operations.

Natural gas storage operators aren’t being left behind as theindustry prepares for rapid gas demand growth. NGI’s new survey andmap of North America’s gas storage operations shows new storagefields and expansions cropping up all over the continent, andaccording to a new study by the Gas Research Institute this is onlythe beginning of what will be needed as gas demand grows beyond 30Tcf/year.

Storage operators aren’t being left behind as the industryprepares for rapid gas demand growth. NGI’s new survey and map ofNorth America’s gas storage operations shows new storage fields andexpansions cropping up all over the continent, and according to anew study by the Gas Research Institute, this is only the beginningof what will be needed as gas demand grows beyond 30 Tcf/year.

Electric restructuring should be left up to the states and besubject to a minimum of federal government involvement, accordingto one survey just completed for the Electric Consumers’ Alliance(ECA). Meanwhile, another survey by RKS Research & Consultantsfinds commercial customers are increasingly demanding of betterservice and lower rates from their electricity suppliers in stateswhere competition already has begun.