The cash market fell across the board Friday but was hardly amodel of consistency. Declines ranged from barely 2-3 cents atscattered points to more than 20 cents at a few western points;most were between a nickel and about a dime. Activity was describedas quiet.
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Calpine announced that it will purchase 21 model 7FB turbinesfrom GE Power Systems and take delivery over the next three years.Calpine hopes that the acquisition will help it reach its five-yearstrategic plan of 40,000 MW of power generation by the end of 2004.GE will deliver the first 12 turbines in 2003, with the other ninefollowing sometime in 2004. The 21 turbines when operated incombined cycle have a total generating capacity of 5,600 MW.
Calpine announced yesterday that it will purchase 21 model 7FBturbines from GE Power Systems and take delivery over the nextthree years. Calpine hopes that the acquisition will help it reachits five-year strategic plan of 40,000 MW of power generation bythe end of 2004. GE will deliver the first 12 turbines in 2003,with the other nine following sometime in 2004. The 21 turbineswhen operated in combined cycle have a total generating capacity of5,600 MW.
FPL Group, parent of Florida Power and Light, is buying 66gas-fired turbines (model 7FA) and a generation services agreementfrom General Electric for $3.7 billion. The turbines will supportthe expansion underway at Florida Power as well as the continuedrapid growth of the corporation’s independent power productionsubsidiary, FPL Energy LLC. Under the agreement, GE will deliverthe turbines starting this year through 2004 and will providesupport services through 2011.
In sharp contrast to the frenzy and volatility during the monthof September, October futures trading has been a model ofcomplacency, where one day’s modest gains are another day’s lossesand narrow trading ranges are the rule rather than the exception.The November contract sputtered lower Monday in an “uneventful”trading session to settle at $2.393. Estimated volume was anextremely light 23,667.
For the last several weeks the futures market has been a modelof volatility where one day’s gains were the next day’s losses.However, the market couldn’t make up its mind yesterday and afterabruptly spiking higher in the morning, ran into overheadresistance and subsequent selling that forced the market lower inthe afternoon. The October contract settled nearly unchanged forthe day at $2.186.
The overall cash market was far from a model of consistencyWednesday. While prices rose by up to a nickel at Gulf Coastpoints, Northeast citygates were no more than flat to up a penny.In contrast, while Michigan and Chicago-area citygates saw gains of2-3 cents, field prices in the Midcontinent were mostly flat around$2.10. However, a Midcontinent producer found it “a littlesurprising” that trading ended on a modestly strong note with latedeals tending to be near the top of small ranges.
The overall price trend was up again Tuesday, but the market washardly a model of consistency. Some points, such as the Northernand Southern California borders and PG&E citygates, barelymanaged to maintain flatness or eke out small gains, while otherssuch as Waha and Northeast citygates continued to surge upward byas much as a dime or more. A marketer reporting Transco Zone 6(NYC) topping $2.60 said she hadn’t expected to see those kind ofnumbers again until next fall at the earliest.