Pushed

Southern California border prices pushed well beyond $7 Tuesday,while PG&E citygates and Malin appeared to be in a catch-uprace with huge upticks of nearly a dollar at both NorthernCalifornia points. However, the big news that El Paso had gottenfederal approval to resume reduced service on its South Mainline’sLine 1110 did not come until late in the afternoon (see relatedstory in this issue).

If you made the trip to Capitol Hill or were listening over theWeb last Thursday, your jaw probably dropped a few inches whenChairman Thomas Bliley (R-VA) of the House Commerce Committeeannounced to a packed hearing room that he was postponing thescheduled markup on electric restructuring legislation until thisweek. At press time Friday, the committee hadn’t yet set a new datefor the markup, but an aide said the goal was to do it this week.

Feeding off gains notched Friday morning, natural gas futurespushed to fresh highs yesterday as funds and locals added to theirlong holdings. With that, the June contract has advanced 16 centsin the last two trading sessions to move past and settle above itsprevious life-of-contract high with a $3.216 closing price Monday.Estimated volume was light at 51,288 contracts despite theimpressive price move. An average trading day would see roughly20,000 more in estimated volume.

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.

Higher prices and production, partially offset by merger costs,pushed third quarter earnings of Consolidated Natural Gas up 90% to$10.8 million, or 11 cents per share, from $5.7 million, or 6cents/share, a year earlier. Excluding costs related to the pendingmerger with Dominion Resources, Inc., of $7.7 million, or 6cents/share after taxes, income from continuing operations in thethird quarter of 1999 was $16.4 million, or 17 cents per share.

Southern California Gas Co.’s proposed restructuring plan hasbeen pushed aside by six new confidential alternatives becausecertain aspects of the utility’s plan have been deemedanticompetitive and have the potential to allow gaming at theTopock, AZ, receipt point, according to observers and participantsin discussions taking place at a downtown Los Angeles hotel.

Southern California Gas Co.’s proposed restructuring plan hasbeen pushed aside by six new confidential alternatives becausecertain aspects of the utility’s plan have been deemedanticompetitive and have the potential to allow gaming at theTopock, AZ, receipt point, according to participants in settlementdiscussions taking place at a downtown Los Angeles hotel.

Although no panic buttons have been pushed yet, the Kansas City Board of Trade (KCBT) is getting increasingly worried about the recent lack of activity on its gas futures contract. There has been no estimated volume since July 29, and as a result, open interest has been stuck at 669 positions.

Although no panic buttons are being pushed yet, the Kansas CityBoard of Trade (KCBT) is getting increasingly worried about therecent lack of activity on its gas futures contract. There has beenno estimated volume since July 29, and as a result, open interesthas been stuck at 669 positions.