Likely

In contrast to forecasts by the National Oceanic and Atmospheric Administration (NOAA) and Salomon Smith Barney of a colder-than-normal winter in key energy consuming regions, WSI Corp.’s end-of-October update to its seasonal forecast for November, December and January predicts warmer-than-normal temperatures in the Northeast, Mid-Atlantic and in the central and southern Plains. WSI, however, said it expects cooler-than-normal temperatures in the Gulf Coast states, Northern Plains, Great Lakes states, and all areas west of the Rocky Mountains.

Prices acknowledged the falloff in weekend demand and widespread Chamber of Commerce-like weather by continuing to slump Friday, but late rebounds were strong enough to astound more than one trader. There wasn’t much consistency in the declines, which ranged from about a nickel or less at a few Gulf Coast, Midcontinent/Midwest and Pacific Northwest points to about 35 cents at OFO-plagued PG&E-related points.

This winter is likely to be near or among the top 33% of the coldest winters in last 106 years, according to Salomon Smith Barney meteorologist Jon Davis. Based on current weather variables, Davis concludes in his “2001-2002 Winter Outlook” that temperatures this winter should be quite similar to the average temperatures last winter, which ranked 24 on a scale of 1-106 with 1 being the coldest.

It now appears less likely that El Paso Natural Gas will be placing new bi-directional gas transportation capacity between Daggett, CA, and Ehrenberg, AZ, to facilitate increased in-state California transportation options. The pipeline intended to use portions of the converted All American pipeline to increase capacity between the two major western market locations, but a binding open season revealed insufficient market interest, El Paso said in a bulletin board notice.

It now appears less likely that El Paso Natural Gas will be placing new bi-directional gas transportation capacity between Daggett, CA, and Ehrenberg, AZ, to facilitate increased in-state California transportation options. The pipeline intended to use portions of the converted All American pipeline to increase capacity between the two major western market locations, but a binding open season revealed insufficient market interest, El Paso said in a bulletin board notice.

As the debate over President Bush’s energy plan continues to unfold, ways in which to bolster the nation’s sagging power transmission infrastructure are getting increased scrutiny. The White House energy blueprint has helped to bring the issue front and center by proposing to give the Federal Energy Regulatory Commission (FERC) eminent domain authority over transmission siting.

In a sequence that likely will be repeated often this summer, California’s independent transmission grid operator, Cal-ISO, Thursday erred on the side of getting out advance warning of possible rolling blackouts only to pull back the emergency measure within minutes of the targeted time for blackouts to begin. As of 4 p.m. (PDT), the blackouts had not become necessary in the second consecutive day of Stage One and Two alerts.

Although this week’s presidential meeting is likely to complicate California’s embroiled political landscape, Republican state legislators are convinced that a bipartisan, wide-ranging deal is still possible without state transmission grid ownership or another utility bankruptcy. It would involve discounts by generators of past-due billings, amounting to billions of dollars. Ultimately, a key adviser to the Republicans said Tuesday, all civil suits against the merchant generators would have to be dropped, something Gov. Gray Davis has adamantly resisted publicly.

As the debate over President Bush’s energy plan continues to unfold, ways in which to bolster the nation’s sagging power transmission infrastructure are getting increased scrutiny. The White House energy blueprint has helped to bring the issue front and center by proposing to give the Federal Energy Regulatory Commission (FERC) eminent domain authority over transmission siting.