Ringing

Natural gas has gotten a ringing endorsement from an unusual source. In a policy address at the American Enterprise Institute, John W. Rowe, chairman and CEO of Exelon, operator of the largest fleet of nuclear power plants, urged lawmakers to “do nothing” and let the markets dictate and the nation rely on “a clean, competitive and inexpensive windfall,” natural gas.

With Hurricane Dean following a more westerly path than first expected, natural gas futures traders were ringing the sales register early and often in Sunday’s overnight Globex session and again during Monday’s regular trading session, peeling almost $1 worth of hurricane premium off the prompt-month contract. September futures reached a low of $6.035 on Monday before closing at $6.040, down a whopping 97 cents from Friday’s close.

Ringing in the official start to the 2007 Atlantic hurricane season, July natural gas futures traders on Friday put in a lackadaisical regular session that resulted in the contract settling at $7.878, down 5.7 cents on the day, but 8.3 cents higher than the previous week’s close. However, later Friday afternoon, the National Hurricane Center (NHC) reported that Tropical Storm Barry had formed approximately 320 miles southwest of Tampa, FL, possibly giving the bulls a little more psychological ammo in the coming week.

Vowing to reduce her state’s carbon footprint, a refrain ringing throughout the West these days, Washington Gov. Christine Gregoire May 4 signed a new climate change law (SB 6001). The new statute sets enforceable limits on greenhouse gas (GHG) emissions from electric generation plants, and it is expected to boost the development of natural gas-fired and renewable energy generation. Power plant fuel restrictions kick in next summer.

Vowing to reduce her state’s carbon footprint, a refrain ringing throughout the West these days, Washington Gov. Christine Gregoire last Friday signed a new climate change law (SB 6001). The new statute sets enforceable limits on greenhouse gas (GHG) emissions from electric generation plants, and it is expected to boost the development of natural gas-fired and renewable energy generation.

Alarm bells should be ringing in the offices of pipeline companies and domestic producers as imported liquefied natural gas (LNG) is expected to grow to about 12% of annual U.S. gas supply in 2010 from only about 1-1.5% today. Such a dramatic increase in supply, coming into the market at brand new locations, will drive down pipeline transportation values and gas prices, according to analysis done by Wakefield, MA-based Energy Security Analysis Inc. (ESAI).

Ringing in the new year with a natural gas rate cut, the New Jersey Board of Public Utilities (BPU) issued orders Wednesday on a number of PSE&G filings, which have the combined effect of reducing rates for the company’s typical residential gas heating customers (who use an average of 200 therms in the winter and 1,252 therms annually) by 3.3%.

With the New Year ringing in the launch of retail electric competition in Texas, a key executive with the Electric Reliability Council of Texas (ERCOT) last Wednesday expressed confidence that the state’s transmission system will be up to meeting the demands of electricity deregulation.

Ringing in the new year, UtiliCorp United announced that it completed its $190 million merger with St. Joseph Light & Power on Dec. 31, 2000. The union, which has experienced a bumpy ride since its initial announcement in March 1999, creates Missouri’s fourth largest gas distributor and third largest electricity distributor (see NGI, March 8, 1999).