Reflecting

Reflecting the cold snap in many regions of the country last week, the Energy Information Administration (EIA) reported a 29 Bcf weekly storage injection, which was on the low end of industry expectations and much lower than the previous two weekly injections of 75 Bcf and 77 Bcf. Putting the brakes on the bearish case at least for the session, December natural gas ended up settling at $11.689, up 8.5 cents for the day.

Reflecting similar sentiments expressed around Wall Street, a Calpine Corp. executive indicated last Tuesday that declining wholesale natural gas prices are not likely to happen anytime soon, and in the longer run, imports of liquefied natural gas (LNG) and eventual Alaskan supplies won’t necessarily dampen prices as many industry observers have been predicting.

Reflecting similar sentiments expressed around Wall Street, a Calpine Corp. executive indicated Tuesday that declining wholesale natural gas prices are not likely to happen anytime soon, and in the longer run, imports of liquefied natural gas (LNG) and eventual Alaskan supplies won’t necessarily dampen prices as many industry observers have been predicting.

Reflecting estimates for higher than estimated wholesale natural gas costs, the Nevada Public Utilities Commission Wednesday approved a 9.2% retail rate hike for Las Vegas-based Southwest Gas Corp., and the utility immediately issued an announcement warning customers they face higher heating bills this winter. Southwest Gas had asked for a 5% hike, but the regulatory commission on further estimating wholesale prices bumped it up to $30 million.

Reflecting estimates for higher than estimated wholesale natural gas costs, the Nevada Public Utilities Commission Wednesday approved a 9.2% retail rate hike for Las Vegas-based Southwest Gas Corp., and the utility immediately issued an announcement warning customers they face higher heating bills this winter. Southwest Gas had asked for a 5% hike, but the regulatory commission on further estimating wholesale prices bumped it up to $30 million.

Reflecting estimates for higher than estimated wholesale natural gas costs, the Nevada Public Utilities Commission Wednesday approved a 9.2% retail rate hike for Las Vegas-based Southwest Gas Corp., and the utility immediately issued an announcement warning customers they face higher heating bills this winter. Southwest Gas had asked for a 5% hike, but the regulatory commission on further estimating wholesale prices bumped it up to $30 million.

Reflecting a drop in linepack, Westcoast posted daily imbalance tolerances of 15% pack and 5% draft for Monday. Last Tuesday the tolerances had been changed to zero pack and 20% draft (see Daily GPI, March 4).

Reflecting what he says is a flight to quality, an investment banker last Thursday said that competition for the purchase of contracted power assets in the United States remains intense as 2003 comes to a close, while market interest in merchant power assets remains tepid, although renewable projects remain a “bright spot” in an otherwise lackluster merchant sector.

Reflecting the recent years of economic downturn and ever-widening state budget deficits, California’s annual growth in natural gas demand exclusive of load for power generation is projected to be under 1% annually over the next 10 years, according to the California Energy Commission staff’s draft energy demand report, 2003-2013, released Feb. 12.