Moderated

In the Pacific Northwest, the near-term energy supply picture is adequate and wholesale power prices are moderated by a combination of factors including abundant natural gas supplies. This was the essence of a revised draft Integrated Resources Plan (IRP) released Friday by Puget Sound Energy (PSE).

After selling off for much of the week as temperatures moderated, natural gas futures bears took a little bit of a break on Friday as the March contract got as low as $5.094 before closing at $5.131, down seven-tenths of a cent from Thursday’s finish.

After selling off for much of the week as temperatures moderated, natural gas futures bears took a little bit of a break on Friday as the March contract got as low as $5.094 before closing at $5.131, down seven-tenths of a cent from Thursday’s finish.

Natural gas producers, especially those active in shale basins, could be in for a rough ride in 2009 and beyond if the current turmoil in the financial markets and the downturn in commodity prices continue unabated, producers told FERC Friday. And while industrial customers see lower gas prices as good news, they say now is not the time to relax.

Natural gas producers, especially those active in shale basins, could be in for a rough ride in 2009 and beyond if the current turmoil in the financial markets and the downturn in commodity prices continue unabated, producers told FERC Friday. And while industrial customers see lower gas prices as good news, they say now is not the time to relax.

Cash market pricing points were down almost across the board on Wednesday as temperatures moderated and demand eased. The biggest drops for a second consecutive day were recorded in the Northeast, despite calls for more snowfall overnight.

As temperatures moderated across the country, almost every cash market point across the country saw a significant double-digit cent decline Friday except for a few Rockies points, which enjoyed small rebounds following a deep plunge Thursday.

Although wholesale prices have moderated somewhat in recent months, the Los Angeles Department of Water and Power (LADWP) Wednesday gained approval from the city council to raise its power rates to cover higher natural gas costs. The action authorizes surcharges for the city-run utility, the nation’s largest municipal utility, whose base electric rates have been frozen for almost a decade.

With hot weather having moderated in its Northeast market area, Tennessee canceled Friday the Critical Day 1 OFO that it had issued Wednesday. East Tennessee Natural Gas also lifted its related Balancing Alert OFO (see Daily GPI, Aug. 3).