Probe

Just as the Department of Energy (DOE) reacted to public outcryover high oil and gasoline prices, Energy Secretary Bill Richardsonand FERC need to find out why wholesale natural gas prices havesoared to more than $4 since the start of the year and preparecustomers for possibly higher gas bills next winter, a majormunicipal gas group said yesterday.

FERC has accepted and suspended subject to refund fournegotiated parking and lending (PAL) agreements between KochGateway Pipeline and its marketing affiliate, Koch Energy Trading.In addition, the Commission has scheduled a technical conference onthe matter to explore what it called “serious concerns” raised byprotesters about Koch’s dealings with its affiliate and use of itsnegotiated rate privileges. The Commission in August 1996 grantedKoch’s negotiated rate authority.

FERC has accepted and suspended subject to refund four negotiatedparking and lending (PAL) agreements between Koch Gateway Pipeline andits marketing affiliate, Koch Energy Trading (see Daily GPI, Feb. 18 andFeb. 25). In addition, the Commission has scheduled a technicalconference on the matter to explore what it called “serious concerns”raised by protesters about Koch’s dealings with its affiliate and useof its negotiated rate privileges. The Commission in August 1996granted Koch’s negotiated rate authority.

With gas and electric utility stocks continuing to probe thedepths after a brief spike in a January fuel-cell frenzy, someobservers and executives are keeping their eyes peeled for the nextseries of corporate takeovers in the industry.

With gas and electric utility stocks continuing to probe thedepths after a brief spike in a January fuel-cell frenzy, someobservers and executives are keeping their eyes peeled for the nextseries of corporate takeovers in the industry.

After posting modest gains last Thursday, the futures marketagain succumbed to selling pressure Friday as traders tried to pushthe December contract below support at $2.25. But, $2.265 was asfar as the contract could plumb and the prompt month was left tosettle for the week at $2.275. Sources pointed to bearishfundamentals and weak, last-day prices as reasons for the decline.

Futures came under heavy follow-through selling pressure fromall segments of the market Friday, adding to a 14-cent lossregistered Thursday. Sources pointed to a weak cash market, whichwas joined by fresh bearish technicals late last week, as reasonsfor the decline. The November contract gapped lower Friday andtrended mostly lower throughout the session to settle at $2.191, a6.3 cent decline.