Priced

California-based independent merchant generators charged less than the average of purchases by California’s Department of Water Resources (DWR), according to a consultant’s analysis of state power purchases in the first quarter.

Natural gas futures were stronger at the open and close yesterday as traders priced in the impact of the first real blast of hot weather across central portions of the country. Nearly gapping higher with its $4.36 opening trade, the June contract sifted slightly lower for much of the day before rebounding convincingly at the closing bell. In doing so the prompt contract not only closed 11.6 cents higher at $4.394, but also managed to fill in the chart gap up to $4.44 on the daily prompt chart.

Western Natural Gas, a Denver-based marketing company, isphasing out its retail marketing business in the face of increasingnatural gas prices and the capital requirements necessary to obtainsupplies.

Except for declines at several of the highest-priced westernpoints, the cash market stayed in an upbeat mood Friday. Gainsranged from about a dime to more than 30 cents, with most between20 and 30 cents. Malin joined the three primary Pacific Northwestpoints (Sumas, Stanfield and Kingsgate) in falling from their loftyheights.

Political repercussions from California’s high-priced heat wavereached all the way to Washington’s White House last week as Gov.Gray Davis asked President Clinton to pressure the Federal EnergyRegulatory Commission to “accelerate its investigation of wholesaleenergy prices in California.”

One of the more promising independent natural gas producingcompanies, Barrett Resources Corp., announced last week itsearnings will suffer over the next few years from forward fixedprice sales in the $2.50/MMBtu range, well below current marketprices above $4/MMBtu, for a significant part of its production.

One of the more promising independent natural gas producingcompanies, Barrett Resources Corp., announced last week itsearnings will suffer over the next few years from forward fixedprice sales in the $2.50/MMBtu range, well below current marketprices above $4/MMBtu, for a significant portion of its production.

Washington Gas Energy Services (WGES) made an alliance withSouthern Company Energy Marketing to bring competitively pricedelectricity to consumers and businesses in Maryland. Southern willprovide wholesale power supply and scheduling services to WGES.