Lengthy

After a lengthy back and forth process, the Federal Energy Regulatory Commission issued an order last week approving an agreement between Commission staff and CenterPoint Energy Gas Transmission Company (CEGT) that effectively clears up alleged violations in a Show Cause Order issued by the Commission on Sept. 15, 2003.

The cash market broke out of a lengthy pattern of volatile price movement for the most part Wednesday. Except for plunges of 60 cents to nearly two dollars in the Northeast, the rest of the market tended to range from slightly softer to 20 cents higher. A majority of the gains were less than a dime.

Adding its name to the lengthy list of marketers that have exited Georgia’s retail gas market, Energy America, Centrica’s U.S. retail gas marketing subsidiary, said last week that it is calling it quits after struggling to build its customer base there last year and then being hit with a fine and other penalties last month by the Georgia Public Service Commission (PSC) for slamming.

After a lengthy financial review, Allegheny Energy reported a $334.4 million net loss (or $2.67/share) for the first nine months of 2002 and found that accounting errors will force it to restate first and second quarter earnings. But the company faces even greater hurdles going forward. Its financial difficulties continue to grow and if arrangements cannot be worked out with lenders, Allegheny admitted it may have to seek bankruptcy protection.

Florida Gas Transmission lifted a lengthy Overage Alert Day notice Friday, while Northern Natural Gas lifted for Saturday a System Overrun Limitation that had been in effect for two days.

North American spot gas prices lost another 20-40 cents Thursday in their lengthy price slide this week as mild weather and packed storage fields provided the market with no place to put gas supply. Prices in every region, including the Rockies, fell substantially as the Nymex gas and crude oil futures screens took an early beating, leaving cash traders no reason to push spot prices higher.

The cash market began what several sources believed could be a fairly lengthy period of downward price consolidation Wednesday. Numbers generally fell between a dime and 20 cents in eastern markets and at Permian Basin/Waha and Pacific Northwest points, while other western prices took an even heavier beating.

After a lengthy absence, “following the screen” was back invogue Friday among trader explanations for cash market movement.”How else are you going to justify rising Northeast prices for whatis normally a lower-demand weekend period?” asked a largeaggregator. A stormy front was moving beyond the East Coast intothe Atlantic, but the temperatures it left behind were still on themild side for December, he observed.

Providing a lengthy list of expected merger benefits,Commonwealth Edison and PECO Energy told FERC and the PennsylvaniaPUC in applications yesterday that they expect approval in nearrecord time. They said the deal will “enhance electric competition,foster FERC’s independent transmission system initiatives, protectboth wholesale and retail customers, and ensure sufficient, safe,reliable, low-cost and clean energy for consumers.” They alsobelieve the merger meets all FERC criteria. A notice ofreorganization is expected to be filed shortly with the IllinoisCommerce Commission, the companies said.