Moves

Michigan Gov. John Engler did as expected on Saturday, signinginto law an electric deregulation utility package which mandates animmediate 5% rate cut for residential customers and gives thestate’s Public Service Commission (PSC) additional authority toensure competition exists for electric services.

The New York Mercantile Exchange’s (Nymex) natural gas pitprobably will be a lot more active on Wednesdays, starting March 1.The exchange, along with several major market players, hasconvinced the American Gas Association to move up by two hours therelease of its influential gas storage report.

Kinder Morgan Inc. made several significant moves last week as part of its “back to basics” strategy, which is designed to streamline and increase the efficiency of the businesses acquired through its merger with KN Energy earlier this year (see NGI, July 12, Aug. 9, and Aug. 20). Company officials, however, say they are only midway through this transition, and there have been quite a few changes to their original plans.

Kinder Morgan, Inc. (KMI) last week completed one of the keymoves that highlighted its merger with KN Energy in July. Thecompany announced that it intends to contribute more than $700million of assets to its publicly traded master limitedpartnership, Kinder Morgan Energy Partners LP (KMP). The assetsincluded are the Kinder Morgan Interstate pipeline system (formerlyKN Interstate Gas Transmission), a 49% interest in Red CedarGathering and a 33% interest in Trailblazer Pipeline.

Kinder Morgan, Inc. (KMI) yesterday completed one of the keymoves that highlighted its merger with KN Energy in July. Thecompany announced that it intends to contribute more than $700million of assets to its publicly traded master limitedpartnership, Kinder Morgan Energy Partners LP (KMP). The assetsincluded are the Kinder Morgan Interstate pipeline system (formerlyKN Interstate Gas Transmission), a 49% interest in Red CedarGathering and a 33% interest in Trailblazer Pipeline.

New York-based Sithe Energies, a privately held leadingindependent power producer, said it has hired Goldman, Sachs &Co. as an advisor in its previously announced intention to sell thecompany.

New York-based Sithe Energies, a privately held leadingindependent power producer, said it has hired Goldman, Sachs &Co. as an advisor in its previously announced intention to sell thecompany.

November Henry Hub futures burst through the 40-day movingaverage at the open yesterday and never really looked back. Aftercrossing $2.859, speculative fund buyers jumped in, sending thecontract 10.2 cents higher for the day to $2.927/MMBtu. Decembergained 10.7 cents, settling at $3.120. January jumped 9.9 cents to$3.130, and February moved up 7.2 cents to $2.945.

Wednesday marked the first time in a week that double-digitmoves were nowhere to be found in the cash market. Most pointsregistered small gains of 2 to 5 cents, feeding off a strongfutures screen and a bullish American Gas Association (AGA) storagereport of a 26 Bcf injection.