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Palmetto Interstate Pipeline Co., a partnership of SouthernNatural and Carolina Power & Light, said it is extending itsopen season for firm transportation capacity on its proposed systemuntil June 30. Interested parties should contact Sonat’s MarkLimbaugh at (800) 633-8570 or CP&L’s Rob Caldwell at (919)546-4552. Palmetto is planning to build a line that would run fromSonat’s terminus in Aiken, SC, to an interconnect with NorthCarolina Natural Gas – which is being purchased by CP&L – inRoberson, NC. CP&L plans to subscribe for a substantial portionof Palmetto’s 200 MMcf/d to 300 MMcf/d capacity to fuel newelectric generation being developed in the Carolinas, with theremainder to be used to increase regional gas availability.CP&L said it plans to build 4,000 MW of gas-fueled generationin the Carolinas by 2007. Palmetto said it plans to have Phase I ofits system in service in April 2002 with up to 300 MMcf/d ofcapacity. Two later phases in the following two years would addcapacity to the system.

In an effort to improve its power market monitoring capabilitiesin light of the price spikes and market disruptions that occurredlast summer, FERC last week changed the reporting requirements forthe 500-600 licensed power marketers.

Everyone seems to be “joining the slow club,” one sourceremarked Wednesday as the last day of June futures trading onlynudged June baseload and the day-trading markets slightly higherfrom the holding patterns established Tuesday. Today will be muchmore active, he said, because the Nymex closes early Friday due toMemorial Day, and time is running out to get deals done.

In an effort to improve its power market monitoring capabilitiesin light of the price spikes and market disruptions that occurredlast summer, FERC yesterday changed the reporting requirements for600 power marketers. The Commission said it intends to remove awaiver of its rules that was granted to power marketers and powerproducers with market-based rates that allowed them to refrain fromfiling their long-term contracts with their customers. The changeputs power marketers on a more level playing field with traditionalutilities, which currently have to file their long-term agreements.

Cautious selling was met with light, scale-down buying pressureat the New York Mercantile Exchange Friday. And when the dust hadcleared and all the orders counted, both bulls and bears couldglean something positive from the session. Bulls were quick topoint to the $2.225 settlement, a 0.7-cent advance for the day.Bears, on the other hand, touted Friday’s lower high and lower lowas an indication the downtrend was still intact. Estimated volumeof 77,538 confirmed the heavy activity in the pit.

Sonat exercised an option recently to buy back 35% interest inSonat Power Marketing from Atlanta Gas Light (AGL). The price wasnot released. Sonat did say it will be at fair market valuedetermined by investment banks selected by Sonat and AGL. Sonatalready owns the other 65% of Sonat Power Marketing.

Atlanta Gas Light was one of the biggest losers among a group of37 LDCs reporting first quarter earnings. AGL’s net income was offa whopping 46% from the first quarter of 1998. PaineWebber notedthe significant drop was due mainly to a change in rate design thattook effect in July 1998 when the company unbundled.

Some major U.S. independent producers absorbed major blows tothe bottom line in the first quarter of 1999, but CEOs from thecompanies insist higher profits are right around the corner.

Some major U.S. independent producers absorbed major blows tothe bottom line in the first quarter of 1999, but CEOs from thecompanies insist higher profits are right around the corner.