Plenty

Montana Power last week offered up plenty of signs that it is ready to fight tooth and nail over a move by the Montana Public Service Commission (MPSC) to assert authority over the rates Montana Power can charge default supply customers. The utility worries that the state commission’s stance could ultimately put it in the position of having to buy power at high market prices and sell that same power at below market prices.

Approximately 40,000 MW of additional electricity can be squeezed from existing coal-fired power plants nationwide through the installation of standard improvements and clean coal technologies, according to a new study by the National Coal Council (NCC). The study, commissioned by the U.S. Department of Energy, also recommends that the U.S. Environmental Protection Agency return to its prior interpretation of a key section included in the federal Clean Air Act so as to foster efficiency improvements at power plants.

Approximately 40,000 MW of additional electricity can be squeezed from existing coal-fired power plants nationwide through the installation of standard improvements and clean coal technologies, according to a new study by the National Coal Council (NCC). The study, commissioned by the U.S. Department of Energy, also recommends that the U.S. Environmental Protection Agency return to its prior interpretation of a key section included in the federal Clean Air Act so as to foster efficiency improvements at power plants.

Someone pulled the plug on gas futures yesterday, but there’sstill plenty of water left in the tub. The July contract plunged42.5 cents but remained above $4 at $4.063.

Despite the gas futures rally that pushed May prices to contracthighs of $3.087 last Thursday, Susannah Hardesty, president ofEnergy Research and Trading, still expects a higher spike nextmonth, possibly to $3.30 for the near-month contract, asnervousness over strong summer gas and power demand reaches thetrauma stage.

Although gas futures prices could take a short-term dip,possibly below $2.65, followed by a small rebound, by late May,Susannah Hardesty, president of Energy Research and Trading,expects prices to be solidly above $3, maybe as high as $3.30. Andshe’s not alone. Given the significant hype about the increase ingas-fired generation and the surge in peak summer power needs,Cynthia Kase of Kase and Company said this market could soar tounexpected heights.

The cash market has plenty of fundamentals to deal with goinginto the Christmas weekend. But despite widespread freezing weatherand a profusion of actual and/or potential pipeline OFOs (question:does a Strained Operating Condition mean CIG has a hernia?), priceswere unusually bearish Wednesday in light of what many wouldconsider bullish conditions. Most declines were in the neighborhoodof a dime, although some Western points that had been flying highearlier in the week were measuring their losses in terms ofdollars.

Without one-time charges, MCN Energy lost plenty in the thirdquarter, and a huge hit of $2.14/share in nonrecurring chargesdidn’t help at all.