Reflecting

Transcontinental Gas Pipe Line has filed a new rate case seekingto roll in costs of several expansions and reflecting an increasedrate of return and related taxes, and higher operation andmaintenance expenses.

Reflecting the uncertainty of the regulatory process andextremely tight time frames, San Jose, CA-based Calpine Corp.Monday dropped plans for three of five temporary natural gas-firedpeaking power generation plants it had proposed as a stopgapmeasure to meet expected power shortages next summer.

The numbers, it seems, don’t tell the entire story. Even thoughoil and gas industry upstream revenues, profits and cash flow areshowing record profits for 1999 compared with the previous year’scollapse, exploration and development spending dropped and provedreserves spending rose significantly, according to ArthurAndersen’s 21st annual Global E&P Trends survey.

Reflecting the spread of East Coast chill further south, FloridaGas Transmission became the latest pipe to issue an OFO Friday.Citing significant market-area demand, FGT declared an OverageAlert Day notice for the system east of Station 12 in the FloridaPanhandle. It carried a 6% tolerance for negative daily imbalances.The pipeline also said it began maintenance Friday at Station 13.Until further notice the work will limit market-area deliveries to1.43 Bcf/d. Due to customer sourcing patterns having its SouthTexas, East Texas and M-1 (24-inch line) zones scheduled close tocapacity, Texas Eastern said Friday it is allowing due-shipperimbalance gas to be taken in those segments. All other servicepoints remain closed for taking due-shipper imbalances, Tetco said.

Feeding off Wednesday’s weakness and reflecting fading concernsthat any of the three tropical systems would reach the gas-richGulf of Mexico, the futures market tumbled lower yesterday as bothcommercial and speculative traders exited long positions. Theresultant price slide left the September contract just penniesabove its $2.90 low for the week and turned several bulls intoshort-term bears. The prompt month finished 8.2 cents lower at$2.948 shortly after notching a $2.93 low late in the session.

Cash prices across the board Friday displayed softness for thesecond day in a row, reflecting a moderating weather forecast forthe weekend and further into this week. Despite a small late bounceback in some markets, prices in most areas finished the dayaveraging 1 to 10 cents less than Thursday’s levels.

The changing face of the energy industry prompted NGC Corp. tochange its name to something that encompasses electric power aswell as natural gas and other commodities. NGC is now Dynegy, aname fashioned from the words dynamic and energy.