Returning

Cash gas numbers were pushed higher almost across the board Tuesday by rising power generation load, which also increased electricity prices at most trading pools. Flatness was limited to the Florida citygate and FGT Mobile Bay in the East and to San Juan-Blanco in the West. Otherwise, most points were up between a nickel and about a dime, but larger gains were recorded in the Rockies and at Northeast citygates.

Cash gas numbers were pushed higher almost across the board Tuesday by rising power generation load, which also increased electricity prices at most trading pools. Flatness was limited to the Florida citygate and FGT Mobile Bay in the East and to San Juan-Blanco in the West. Otherwise, most points were up between a nickel and about a dime, but larger gains were recorded in the Rockies and at Northeast citygates.

Technical factors, short-covering — and oh yeah, a tad of returning cold weather fundamentals — were the most plausible reasons sources could cite for mostly higher weekend prices, despite the usual demand slump for such a trading period. Friday’s firmness was fairly moderate with nearly all points ranging from flat to nearly a dime up; most gains were about a nickel or less.

The tropical storm threat was fading, but hotter weather was returning in many areas, prompting mild firmness in the cash market Monday. Most points ranged from flat to as much as about 30 cents higher in the case of Transco Zone 6-NYC, but there were a few small downturns thrown into the mix.

Returning fire in the continuing war of words, a Duke Energy official on Friday refuted claims by former employees of its South Bay power facility that the company was manipulating plant output to drive up prices. The company called the charges unfounded, noting that the plant was actually directed by the California Independent System Operator (Cal-ISO), not Duke, to track fluctuations in electricity demand.

Returning fire in the continuing war of words, a Duke Energy official refuted claims by South Bay power plant ex-employees Friday, and said that output at the company’s plant was actually directed not by Duke, but by the California Independent System Operator (Cal-ISO) to track fluctuations in electricity demand. The plant, he said, operated at top reliability at all times.

Natural gas supply can be adequate for the expected demand in the future from power generators as well as LDCs, as long as rigs remain in the ground and the industry pays attention to indicators, according to Bruce Henning, director of Energy and Environmental Analysis Inc. (EEA) at the Energy Bar Association’s 55th meeting in Washington, D.C. last week

Southern California border prices pushed well beyond $7 Tuesday,while PG&E citygates and Malin appeared to be in a catch-uprace with huge upticks of nearly a dollar at both NorthernCalifornia points. However, the big news that El Paso had gottenfederal approval to resume reduced service on its South Mainline’sLine 1110 did not come until late in the afternoon (see relatedstory in this issue).

With the Houston trade fair ended, the cash market startedreturning to normal Friday. And continuing the pattern seen formost of February, “normal” meant essentially flat pricing. Butsigns of weakening were more evident as small downticks notablyincreased in frequency. Some of the softness was attributable tothe normal weekend drops in gas demand.