Loads

Overall average physical gas prices rose on average less than 3 cents Monday, but an increase in loads at Northeast points and restrictions at California locations pushed prices in those areas to double digit gains. Futures slumped lower and by the end of the day July and August contracts had each fallen 8.1 cents with the July landing at $2.218 and the August settling at $2.263. July crude oil shed $1.40 to $82.70/bbl.

An annual increase of 1.75% in its peak-day gas loads through 2015 is projected by Boise, ID-based Intermountain Gas Co. in a five-year planning document submitted recently to the Idaho Public Utilities Commission (PUC). Given planned upgrades over the next five years, Intermountain sees no peak-day challenges.

Long-standing plans to site a $159 million liquefied natural gas (LNG) storage plant to help meet gas peak loads have hit another bump, driving back the projected start date for the Washington Gas Light Co. distribution utility’s proposed facility to the winter of 2013-14, said incoming CEO Terry McCallister.

Long-standing plans to site a $159 million liquefied natural gas (LNG) storage plant to help meet gas peak loads have hit another bump, driving back the projected start date for the Washington Gas Light Co. distribution utility’s proposed facility to the winter of 2013-14, said incoming CEO Terry McCallister.

Despite predictions of moderate declines of cooling loads in parts of the South, Midwest and Midcontinent, the previous day’s rally of 16.6 cents by August futures combined with remaining heat-related gas demand to lift cash prices at all points Wednesday.

California’s generation sector reached three major milestones at the start of April, all of which could have an impact on future fuel loads and generation operations in the nation’s most populous state: grid operators gained a new day-ahead market, climate change scientific impact assessments were released and a U.S. Supreme Court decision offered some solace for the state’s proliferation of coastal, sea water-cooled generation plants.

Cash prices moved up for the third day in a row Wednesday, posting gains of 5-50 cents on hot weather, strong power generation loads for airconditioning and rising futures prices. The lowest cash market locations in the Rockies, such as CIG and Northwest Pipeline, moved out of the $4s and back into the low $5s for the first time in about a week.

Although heat levels weren’t quite as intense or widespread as they had been a week earlier, power generation loads in much of the East and West were still substantial enough to have prices rising at all points Monday. Carry-over support from a 22.9-cent screen gain on Friday also contributed to Monday’s cash strength.

Looking to get in on the liquefied natural gas (LNG) wave to the U.S., a group of southeastern U.S. rural electric cooperatives and municipal gas utilities have aggregated a portion of their gas loads for a request for proposals (RFP) to acquire long-term supplies of LNG.