Lowered

October natural gas futures continued to work lower on Wednesday as the Energy Information Administration (EIA) reported that it has lowered its 2010 gas price forecast by 15 cents due to recently downward revised growth estimates for economic activity through 2011. The prompt-month contract Wednesday reached a low of $3.795 before closing at $3.814, down 3.8 cents from Tuesday’s finish.

Goldman Sachs on Thursday raised its 2010 gas production forecast and lowered its New York Mercantile Exchange (Nymex) price forecast for the year to $6/MMBtu from $7.30/MMBtu. The firm also introduced a 2011 Nymex forecast of $6.50/MMBtu.

Goldman Sachs last week raised its 2010 gas production forecast and lowered its New York Mercantile Exchange (Nymex) price forecast for the year to $6/MMBtu from $7.30/MMBtu. The firm also introduced a 2011 Nymex forecast of $6.50/MMBtu.

Pacific Gas and Electric kept a systemwide high-inventory OFO on its California Gas Transmission system in place at least through Friday but lowered the category from Stage 3 to Stage 2, loosened the tolerance on daily positive imbalances from 5% to 12% and reduced penalties for exceeding the tolerance from $5/Dth to $1/Dth.

For the third time in four years, Idaho regulators Tuesday lowered the commodity price part of Intermountain Gas Co.’s retail natural gas utility rates, and later the same day reported that they had received a third gas rate decrease request from Spokane, WA-based Avista Utilities.

Following similar actions by their colleagues in Oregon and Washington state, Idaho regulators said Tuesday they have lowered Spokane, WA-based Avista Utilities’ retail natural gas utility rates in the state by 22%, or more than the utility had requested earlier this fall. The lower rates became effective last Sunday for Avista’s 70,000 gas customers in northern Idaho (see Daily GPI, Oct. 1).

For the second time in six months the Idaho Public Utilities Commission (PUC) lowered the retail natural gas rates of Spokane, WA-based Avista Utilities. Avista gas utility customers in Idaho will see an average 6.7% drop in their rates, directly related to the continued decline in wholesale gas costs.

Colorado State University (CSU) last week lowered its Atlantic hurricane forecast for 2009 to 12 named storms, with at least half of them likely to become hurricanes. Two of the storms are expected to develop into intense or major hurricanes (Saffir/Simpson Category 3-4-5) with sustained winds of 111 mph or more.

Colorado State University (CSU) Tuesday lowered its Atlantic hurricane forecast for 2009 to 12 named storms, with at least half of them likely to become hurricanes. Two of the storms are expected to develop into intense or major hurricanes (Saffir/Simpson Category 3-4-5) with sustained winds of 111 mph or more.