Mmbtu

Ongoing power price spikes in the California market are directlyrelated to natural gas prices running $60 to $75/MMBtu, accordingto Kellan Fluckiger, COO of the Cal-ISO, who announced another day,Tuesday, of Stage One and Two power alerts.

As spot gas prices in California were breaking records again Friday with $61/MMBtu quotes being reported at PG&E’s Citygate, some state officials already started dubbing the upcoming heating season as California’s “winter of discontent.”

With gas prices near $5/MMBtu, oil above $30/bbl and powerprices spiking 700% in Southern California this summer, the signsof struggle in the energy sector are clear. It’s the requiredresponse that still seems a little cloudy.

With gas prices near $5/MMBtu, oil above $30/bbl and powerprices spiking 700% in Southern California this summer, the signsof struggle in the energy sector are clear. It’s the requiredresponse that still seems a little cloudy.

Gas producers must be wringing their hands in glee as futuresprices top $4.45/MMBtu, but some of their customers clearly are alittle less than overjoyed. High gas prices are forcing somefertilizer producers to consider shutting down their plants andselling their feedstock on the open market just to make ends meet.

Gas prices shot to $5/MMBtu last Monday at the SouthernCalifornia border and PG&E Citygate, and hourly intra-daypeaking prices on the California Power Exchange spiked to $863/MWh.Day-ahead peaking power prices got as high as $470.

Due to nominations exceeding capacity, Transwestern wasallocating deliveries Wednesday to SoCal Gas at Needles, CA. About196,000 MMBtu/d in the West of Thoreau segment was affected,Transwestern said.

Northern Natural said the 89 Mitchell CO2 outlet will be out forgas days Nov. 30 through Dec. 1 for planned pipeline maintenanceaffecting 80,000 MMBtu/d. Mitchell plant volumes will be at zeroduring the period.

Florida Gas Transmission has filed an application with FERC toupgrade two compressor stations in order to add 80,000 MMBtu/d ofmainline firm transportation capacity on the Western Division ofthe pipeline for service to Alabama Electric Cooperative, which hassigned a 12-year contract for the entire amount. FGT requested itbe granted authorization to begin construction and operation of the$6.9 million expansion on Nov. 1, 2000. It would receive the gasfrom its Destin Pipeline interconnect and transport it 90 miles toAEC’s existing meter station yard in Alabama. FGT plans to add4,800 hp of compression at two units at station 11A. It isproposing to charge negotiated rates for the service to AEC, andsaid it expects to be “fully reimbursed for the cost of thefacilities.” The pipeline told FERC, “under the Commission’s Sept.15, 1999 ‘Statement of Policy’ concerning natural gas pipelinefacilities, this proposal meets the criteria for rolled-inpricing.”