Rare

While continuing to be a rare island of financial strength and stability in turbulent energy times, San Diego-based Sempra Energy, faces some large financings and increased risks because of the “California effect” on power market deals, difficulties in energy trading and problems with some South American distribution utility ventures, according to a report issued Tuesday by CreditSights, a London-based independent financial analysis firm.

The Northeast, where unseasonable cold was expected to linger for another day or two, was the rare market seeing rising prices as April aftermarket trading got under way Monday. Otherwise, except for some flat to mildly softer numbers in California and the Rockies, losses tended to range from about a nickel to 30 cents. The overall market was weighed down by general mild weather and continued screen weakness.

The swing market was experiencing only mild aftershocks Thursday following the major earthquakes earlier in the week. Except for some gains in the Rockies, the price path remained downhill everywhere else but the slope was getting less steep. The calm-down was welcomed by traders, since it lessened the stress of price hyper-volatility and also allowed them to focus more on March bidweek business.

In a rare flexing of its disciplinary powers, the Federal Energy Regulatory Commission last week suspended for one year the authority of Enron subsidiary Transwestern Pipeline Co. to negotiate rates based on basis differentials and ordered shipper refunds for excess charges, which at times reached 100 times the maximum regulated rate during the California energy crisis in 2000-2001. The Commission also issued a draft notice of inquiry (NOI) into all negotiated-rate transportation deals that are tied to basis differentials.

Propelled by a smaller-than-expected storage injection figure and fueled by concerns over a tropical depression in the eastern Caribbean Sea, natural gas futures jumped to a new two-week high Thursday as holders of recently established short positions headed for the exits. That short-covering was enough to boost the November contract to a $2.47 high en route to its $2.414 close, a 9.4-cent advance for the session.

In a rare display of unanimity, major and independent gasproducers last week joined forces to ask FERC to stay the removalof the price caps on short-term capacity release transactions untilOrder 637 undergoes full rehearing at the Commission and in thecourts. The price caps are due to be lifted on March 26.

For bull traders yesterday’s natural gas futures session was acase of “no news is bad news” as prices chopped lower in a raresub-50,000 volume session. As usually is the case the promptmonth-September-took the biggest hit, slipping 4.5 cents to finishat an even $2.70.

In a rare display of unanimity, pipelines and producers lastweek said the federal government’s ban on oil and gas production ona wide swath of public lands – both onshore and offshore – was thebiggest obstacle to supplying the 30 Tcf of gas needed to meet theClinton administration’s proposed global-warming targets.

In a rare display of unanimity, pipelines and producersyesterday said the federal government’s ban on oil and gasproduction on a wide swath of public lands – both onshore andoffshore – was the biggest obstacle to supplying the 30 Tcf of gasneeded to meet the Clinton administration’s proposed global-warmingtargets.