Lowers

Assuming the weather cooperates, spot natural gas prices are expected to average about $3.12/Mcf next winter, up about 70 cents from prices during last year’s heating season, but “only” 10-15% higher than current gas prices, according to the Energy Information Administration (EIA). It projects the annual gas price will average about $2.78/Mcf, down significantly from the year-ago level of $4 and down 11 cents from its July forecast. EIA also lowered its 2003 price forecast 20 cents to $3.02.

Assuming the weather cooperates, spot natural gas prices are expected to average about $3.12/Mcf next winter, up about 70 cents from prices during last year’s heating season, but “only” 10-15% higher than current gas prices, according to the Energy Information Administration (EIA). It projects the annual gas price will average about $2.78/Mcf, down significantly from the year-ago level of $4 and down 11 cents from its July forecast. EIA also lowered its 2003 price forecast 20 cents to $3.02.

As several competitors struggled for their very survival last week, Duke Energy reported earnings rose to 57 cents per share in the second quarter from 54 cents a share a year ago, due to hefty profits in the company’s gas pipeline business, which it said offset lower results for its sagging merchant energy business. Wall Street responded favorably to the news, with Duke Energy stock gaining about 27% in value for the week to trade at $22.45 a share late Friday.

As several competitors struggled for their very survival Tuesday, Duke Energy reported earnings rose to 57 cents per share in the second quarter from 54 cents a share a year ago, due to hefty profits in the company’s gas pipeline business, which it said offset lower results for its sagging merchant energy business. Despite the upbeat report, the company’s stock fell slightly to $19.06 a share in late-day trading.

As several competitors struggled for their very survival Tuesday, Duke Energy reported earnings rose to 57 cents per share in the second quarter from 54 cents a share a year ago, due to hefty profits in the company’s gas pipeline business, which it said offset lower results for its sagging merchant energy business. Despite the upbeat report, the company’s stock fell slightly to $19.06 a share in late-day trading.

Standard & Poor’s lowered the corporate credit rating on CMS Energy Corp.’s subsidiaries utility and pipeline subsidiaries, Consumers Energy Co. and CMS Panhandle Pipeline Cos, to double-‘B’, which is in line with the ratings of the parent company. S&P also lowered the senior unsecured rating on CMS Energy to single-‘B’-plus and removed all the ratings of CMS and its subsidiaries from CreditWatch with negative implications. The outlook for the company is still negative.

Standard & Poor’s lowered the corporate credit rating on CMS Energy Corp.’s subsidiaries utility and pipeline subsidiaries, Consumers Energy Co. and CMS Panhandle Pipeline Cos, to double-‘B’, which is in line with the ratings of the parent company. S&P also lowered the senior unsecured rating on CMS Energy to single-‘B’-plus and removed all the ratings of CMS and its subsidiaries from CreditWatch with negative implications. The outlook for the company is still negative.

Hurricane forecaster Dr. William Gray of Colorado State University cut his prior tropical storm forecast for the year by one but said the hurricane season this summer should still be more active than normal with 12 named storms (average is 9.6), seven hurricanes (average is 5.9), three intense (category 3-4-5) hurricanes (average is 2.3) and overall net tropical cyclone activity of 125% of the average year for the period between 1950-2000.

Mirant’s stock price has plunged 60% since the beginning of December forcing the company to take drastic actions to restore investor confidence. Enron’s bankruptcy, Mirant’s credit rating downgrade by Moody’s Investor Services and questions about its accounting practices all have played a role in the collapse of its stock.