Reserved

“Buy the rumor, buy Access; then sell on Thursday,” was onetrader’s variation on the almost clich‚ “buy the rumor, sell thefact” trading strategy. However, that variation would have beenprofitable considering the market’s price action both before andafter the release of the storage report Wednesday evening. Afterbounding as much as a dime higher in the regular open outcry andAccess trading sessions Wednesday, the futures market was shuffledlower yesterday. The July contract finished at $2.397, off a pennyfor the session.

The U.S. Senate is closing in on a set schedule of hearings forall pending federal electric deregulation proposals, Senate EnergyCommittee Chairman Frank Murkowski (R-AK) said at a committeehearing last week. The schedule will include a hearing date for theDept. of Energy (DOE) Secretary Bill Richardson’s administrationproposal, allowing interested parties to comment on itscontroversial 7.5% renewable energy mandate.

KN Energy signed Nicor Gas of Illinois up for 300 MMcf/d ofcapacity on its Horizon Pipeline and began an open season for theproject.

Avista Energy, emphasizing people power in its drive to become anational energy marketing and technology company, has just namedsix new vice presidents, picking up talent from IllinoisPower/Illinova Energy and Enron Capital and Trade among others.

The sale of Shell subsidiary Transok to Enogex Inc. for about$700 million last week continues Shell’s domestic restructuring anddoubles Enogex’s pipeline holdings. The sale price includesEnogex’s assumption of $173 million in long-term debt. Transok isheadquartered in Tulsa and operates more than 5,000 miles ofpipelines with capacity of about 2.5 Bcf/d and nine gas processingand treating plants.

Questar Pipeline has called on FERC to jettison the proposedmerger of powerhouses Sempra Energy and KN Energy, insisting thedeal would “undermine” competition in the natural gas and electricmarkets in southern California.

Large commercial and industrial customers in Southern Californiashould experience further rate relief on their natural gas billsnext year, but the declines will be modest, according to aCalifornia Public Utilities Commission staff manager in charge oftwo pending rate cases for Southern California Gas Co., whichcontinues to keep a wary eye on new proposed interstate pipelinesthat would like to hook up directly to some of its largestcustomers.

San Diego Gas & Electric (SDG&E) has completed the saleof its 951 MW Encina Power Plant in Carlsbad, CA, and 253 MW ofcombustion turbine facilities in San Diego County to Dynegy Inc.and NRG Energy Inc.

Devon Energy Corp. and PennzEnergy Co. announced plans to mergeyesterday. While the deal was generally cheered by analysts, somecriticized PennzEnergy Chairman James L. Pate for letting thecompany go too cheaply without considering other options. Theannouncement also raised the hackles of PennzEnergy investors.