Occurring

High gas prices have caused severe and lasting demand destruction in the industrial sector, wiping out at least 2.8 Bcf/d of industrial consumption so far. According to Arlington, VA-based Energy Ventures Analysis’ (EVA) annual Fuelcast long-term outlook, industrial demand probably will decline another 2.5 Bcf/d before it begins to recover, and the recovery isn’t likely to happen soon.

Mirant Corp. reported last Thursday it overstated its net income from 1999 through the first half of this year by $41 million, but it said an independent review of its books found no fraud was committed by the company. The Atlanta-based company also revealed that the Department of Justice is looking into its energy trading practices and certain accounting matters.

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.

Sonat’s proposed $82 million rate hike hit a snag last week, asFERC suspended any increase from occurring until March 1 and calledfor a hearing where opposition to the proposal can presentinformation.

Sonat’s proposed $82 million rate hike hit a major snag lastweek as FERC suspended any increase from occurring until March 1and called for a hearing where opposition to the proposal canpresent information.

CNG Transmission Corp. last week called on FERC to dismiss thepending application of potential competitor Independence Pipeline,claiming that the 400-mile project was based on out-dated andfaulty demand projections for the Northeast gas market and lackedbinding precedent agreements. In addition, it said Independence hasdrawn “substantial opposition” from affected landowners andenvironmental groups.

A skyrocketing futures screen took cash along with it Monday,with increases of up to a dime or more occurring at many pricepoints. The surge carried some Midwestern citygates at Michigan andChicago back to the plus side of $2 for the first time since earlyAugust.

A white paper released by Prosper Business Development Corp.outlines three phases of revolution occurring in the energyindustry and explains three mistakes marketers must avoid to ensuresuccess in the competitive marketplace. The paper addressesdifferences from telecommunications deregulation and warns of ashakeout for energy marketing executives who fail to respond to thederegulating market.