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Duke Energy’s decision last month to cut its losses and sell all of its Southeast generation illustrates the dire market conditions that will prevail in the region over the next decade, according to a report released last week by Standard & Poor’s.

Market dynamics were as tumultuous as ever Monday astriple-digit gains from the Rockies/Southwest eastward were insharp contrast to huge declines at most California and PacificNorthwest points. In that latter group only the Southern Californiaborder, which notched yet another price record at $69, achieved anadvance in price average, and even it was plunging as “low” as $30near deadline.

El Paso Corp. has completed a previously announced agreement to sell its Eagle Point refinery to Sunoco Inc. for $111 million, plus fair market value for related working inventories when the deal closes in mid-January. When the transaction was announced last April, El Paso agreed to sell the refinery and its related assets for $130 million.

Thursday’s explosion of prices in which gains ranged from about 30 cents to 90 cents (Algonquin citygate) left quite a few traders befuddled and groping for an explanation. Several were able to offer suggestions about potential contributing factors, but added that they didn’t believe their suggestion alone rationalized the big gains. “Beats me” was the essence of most answers.

Consultants at Global Insight predict that 3 Tcf-plus storage levels at the end of November will result in lower-than-expected prices next year, but a number of factors, including limited LNG import capacity, minimal gains in Gulf of Mexico gas production, further declines in gas imports from Canada and a growing economy, will put a floor under the market.

Its close-to-defunct risk management business, plus its former communications business and litigation costs, tacked on another large loss for Dynegy Inc.’s second quarter. The company Friday reported a net loss of $290 million, or $1.00 per diluted share, $240 million of which were connected with its former businesses.

When EOG CEO Mark Papa opens his mouth, the words “bullish on gas prices” usually are among the first to come out, but this year Papa’s backing up his words with actions. None of EOG’s North American natural gas production is hedged in 2004 and 2005 because Papa said he expects gas prices to remain above $5/MMBtu (Henry Hub) for at least the next five years.

When EOG CEO Mark Papa opens his mouth, the words “bullish on gas prices” usually are among the first to come out, but this year Papa’s backing up his words with actions. None of EOG’s North American natural gas production is hedged in 2004 and 2005. Papa said he expects gas prices to remain above $5/MMBtu (Henry Hub) for at least the next five years.

The 40 cents-plus screen spike of the day before was the most frequently cited factor in Tuesday’s muscle-flexing cash market, but rising temperatures in the South, storage injection demand and the end of a Rockies transportation constraint also drew mention. Double-digit gains ruled the day at most points, accompanied by triple-digit rebounds for CIG, Cheyenne Hub, Questar and San Juan-Bondad. Significant nuclear outages, while little changed from before, also helped bolster gas prices.