Price

Prices emerged from the weekend to move higher in fairly quietactivity Monday, mostly in amounts of a nickel or less. Theoutperforming points were concentrated in California and theNortheast.

Stung by a negative financial report from an independentnewsletter that dropped its stock price 17%, San Jose, CA-basedCalpine Corp. reacted quickly last week to reiterate its aggressivestrategy for developing groups of gas-fired merchant power plantsthroughout the U.S. over the next five to 10 years. It also said itwould continue to grow its related power and gas marketingoperations.

Prices returned to a fairly strong upward track in most marketsThursday except for the Rockies and California, where an extendedhigh-inventory OFO by PG&E put a damper on things.

NGI’s Daily Gas Price Index incorrectly stated that “active”ownership by a class of market participants in a regionaltransmission organization (RTO) was limited to a benchmark of 25%.The correct level is 15%. Active ownership of RTOs by either aclass of market participants or an individual market participantwill cease after a five-year period, “with an extension possible incertain circumstances,” FERC said last week on rehearing of Order2000, which promotes the formation of RTOs in the electricitymarket.

Achieving a vast amount of success in Georgia’s newlyderegulated retail gas industry came at a significant price, SCANAsaid last week as the South Carolina-based company reported 1999earnings of $179 million, or $1.73/share of common stock, down from$223 million, or $2.12/share in 1998.

Fueled by a larger-than-expected storage withdrawal and promptedby gains in Wednesday night’s Access session, natural gas futuresclimbed higher yesterday as traders lifted prices in a briskafternoon buying surge. The March contract finished up 5.2 cents at$2.592, but the real story was the outer months, which gained 6cents or more on moderate position rolling.

Adding to Monday’s 18-cent price slide the futures marketdribbled lower yesterday as traders factored warming temperaturesinto prices and hunted for sell-stops amid two distinct sellingsurges.

If regulators wanted further proof of need for additionalpipeline capacity to the Northeast, Independence Pipeline andTranscontinental Gas Pipe Line said they got it last month whendelivered prices in some markets shot up to nearly $20Dth. Citingthe January deliverability shortage, the two pipelines separatelyasked FERC to deny the requests for a stay of the interim orderconditionally approving their Northeast projects.

The bloom was off the Northeast price rose Friday as weekendcitygate quotes began plunging back to earth. The non-Northeastmarket ranged from flat to a little more than a nickel higher.