Performance

In an effort to capture the rewards and pass along savings madepossible by performance-based rates, NIPSCO Industries and its newaffiliate, Bay State Gas, are combining gas supply operations. Thetwo LDCs, which became sister companies when NIPSCO parent NIbought Bay State in February, expect to save as much as $1million/year through combined portfolio management, according toone source.

In an effort to capture the rewards and pass along savings madepossible by performance-based rates, NIPSCO Industries and its newaffiliate Bay State Gas are combining gas supply operations. TheMidwest and New England LDCs manage firm loads of about 500 MMcf/dand most of that will be procured on the daily spot market in thefuture, said NIPSCO’s Dan Gavito, vice president of corporate gassupply.

Prices began the week with a mixed performance Monday. Flatnesswas dominant at most points, with small drops outweighing smallgains at others. Mild weather throughout much of the nation lent nofundamental support to gas demand. However, sources saw a goodchance for at least modest increases today based on Monday’sfutures uptick.

UtiliCorp United reported a 15% second-quarter earnings risedespite weakened performance in its energy delivery segment,sharply diminished results from Aquila Gas Pipeline, and anelectric rate cut in Missouri. Growth in wholesale energy marketingand international operations get the thanks for boosting 1998second quarter earnings to $23.4 million from $20.3 million a yearearlier.

With little to go on in the way of guidance, cash prices muddledaround in an essentially flat performance. There were scattered upsand downs, but no point moved by more than a nickel in eitherdirection and most changes were minuscule.