Nearly

In a move that surprised power traders last week, Peabody Groupsold its marketing subsidiary Citizens Power to merchant powergenerator Edison Mission Energy for an undisclosed amount. CitizensPower is ranked as the eighth largest power marketer in the UnitedStates, and had trades totaling 92.3 million MWh last year. EdisonMission, based in Irvine, CA, currently only trades power in theNortheast, where it operates a 650 MW power plant in Homer City,PA. That plant serves the PJM Interconnection and New York markets.

Encouraged by an initial production of nearly 4 MMcf/d — froma well which three months later is still going strong at more than3 MMcf/d – Mitchell Energy & Development has started up afull-fledged infill drilling program at its East Texas NorthPersonville field.

Kinder Morgan Inc. (KMI) reported first quarter 2000 income fromcontinuing operations of $46.1 million compared to income fromcontinuing operations of $23.9 million for the first quarter of1999. Net income for the first quarter was $46.1 million comparedto $7.1 million in the first quarter a year ago, which included a$16.8 million after-tax loss from discontinued operations.

Kinder Morgan Interstate Gas Transmission LLC yesterday agreedto pay a whopping civil penalty of nearly $5.1 million as part of astipulation and consent agreement that it signed with the FederalEnergy Regulatory Commission.

Nearly all points continued to slide a few more cents Thursday,but afternoon rallies by three key April futures contracts (naturalgas, crude oil and heating oil) had many traders believing thatwould spark a rebound in the gas market today.

Nearly all markets ranged from flat to just over a dime higherin post-weekend trading Monday, with most increases on either sideof a nickel. The stronger rises tended to occur mainly at westernpoints, while most of the very mild softness was at Northeastcitygates.

After nearly three years and some substantial changes in itsnatural gas supply flexibility, the backers of the proposed HighDesert Power Plant about 100 miles northeast of Los Angeles pulledtogether final air emission mitigation and water deals last weekthat they think will get them final state approval for their plantby spring. The final steps were taken as the project won alast-minute reprieve from a preliminary recommendation that theCalifornia Energy Commission (CEC) reject the proposal, which wasthe first of what are now more than two dozen merchant power plantproposals pending.

After nearly three years and some substantial changes in itsnatural gas supply flexibility, the backers of the proposed HighDesert Power Plant about 100 miles northeast of Los Angeles pulledtogether final air emission mitigation and water deals this week(Feb. 7-11) they think will get them final state approval for theirplant by spring. The final steps were taken as the project won alast-minute reprieve from a preliminary recommendation that theCalifornia Energy Commission (CEC) reject the proposal, which wasthe first of what are now more than two dozen merchant power plantproposals pending.

Overall prices for the weekend softened in Friday’s trading, butsome sizeable rebounds were occurring towards mid-morning as cashfollowed the screen back up after having previously followed itlower, several traders said.