At the request of several major market participants, the California Energy Commission revised its draft natural gas infrastructure report to increase its short-term assuredness, but it also raised questions about over-reliance on natural gas for electricity generation longer term. The report is on the commission’s agenda for approval Wednesday (Oct. 3).
Articles from Participants
Still holding on to the collateral of its 70-odd participants inthe form of letters of credit and bonds worth hundreds of millionsof dollars, California’s state-chartered nonprofit wholesale spotmarket for electricity, Cal-PX, chose a Chapter 11 bankruptcyfiling last week because of the preponderance of litigation andfederal regulatory actions pending, its CEO George Sladoje saidMonday.
In an effort to provide a more expansive period in whichparticipants can adjust their positions on evenings whenafter-hours Access trading is unavailable, the New York MercantileExchange will offer a 10-minute post-close trading session at theend of every week, with the same trading range that occurs duringthe day’s trading session, for its crude oil, heating oil, unleadedgasoline, and natural gas futures contracts.
Market participants cited short-covering and relatively strongcash prices as the main reasons for a 7.4-cent gain turned in bythe March Nymex contract Tuesday. The contract flirted around theminor resistance level of $1.81 for most of the day before settlingslightly higher at $1.818.
The halfway nature of deregulation in the electric industry,which left market participants without the tools necessary to dealwith a sudden tight market situation-and panic-were criticalelements in the recent spiking of spot electric prices, marketexperts told congressmen Wednesday.