Raising

It appears the Federal Energy Regulatory Commission isn’t the only federal agency raising questions about the propriety of emergency loans that were secured by two Enron Corp. pipeline subsidiaries at the time — Northern Natural Gas Co. and Transwestern Pipeline — to help bail out the financially troubled parent company just before it plunged into bankruptcy. The Justice Department and Securities and Exchange Commission (SEC) also have taken an interest, according to The Wall Street Journal (WSJ).

The National Weather Service (NWS) reaffirmed that next week’s colder temperatures — on which many traders had based price hikes earlier this week — are still there, but apparently their market strength had already been milked for all they were worth. Quotes were in mild to moderate retreat in all regions Thursday.

In light of yesterday’s 47-cent downward futures correction,PaineWebber may have jumped the gun a bit in raising its Henry Hubprice projections yesterday by about 15 cents for this year andnext to $3.90 and $3.95, respectively. But the investment firmalready is playing catch-up to Salomon Smith Barney (SSB) and therest of the bullish bunch on Wall Street.

PNM, or Public Service Company of New Mexico, has asked stateregulators to accept a negotiated settlement raising rates 3.7% forresidential customers and 7% for larger customers and resolving ayears-long dispute that has wound its way through two regulatorycommissions and the state supreme court.

After raising its IT availability into the Zone 6-NYC pool to itshighest level in more than a month Tuesday (see Daily GPI, Jan. 11), Transco said that effectiveFriday there will be only about 25,000 dth/d of IT available throughthe Linden (NJ) Regulator Station and zero IT upstream of Station 90and on the Leidy Line for deliveries downstream of Centerville, NJ.

In an effort to deal with the serious decontracting problem onits pipeline system caused by the addition of Northern Border’sChicago expansion and the Alliance Pipeline project, TransCanadasaid last week it is strongly considering filing an applicationwith the National Energy Board this month to increase itsinterruptible and short-term firm transportation rates, somethingthe pipeline’s shippers almost certainly will oppose.

PG&E Gas Transmission-Northwest now expects Unit 5-C toreturn to service for June 1 operations, raising Kingsgate capacityto 2,360 MMcf/d. The return of Unit 7-C is scheduled for June 10,with Kingsgate reaching 2,520 MMcf/d.

Many industry analysts have been steadily raising their gasprice forecasts because of the year-long drilling slump and itspotential impact on gas deliverability, but St. Petersburg,FL-based Raymond James &amp Associates went out on a limb last weekpredicting sharp price spikes above $10/Mcf at the Henry Hub nextwinter and an average of $3/Mcf at the hub next year.

Many industry analysts have been steadily raising their gasprice forecasts because of the year-long drilling slump and itspotential impact on gas deliverability next winter, but St.Petersburg, FL-based Raymond James & Associates went out on alimb this week predicting sharp price spikes above $10/Mcf at theHenry Hub this winter and an average of $3/Mcf at the hub nextyear.