Seize

After enduring a fast and furious first three days of trading for the week that resulted in a $1.432 drop, traders appeared to seize the opportunity on Thursday and Friday to expand one of the last weekends of the summer. Following a slow Thursday, the activity Friday once again was lethargic as the September natural gas futures contract closed at $5.523, down 9.9 cents on the day, and $1.487 lower than the previous Friday’s close.

CA Gov. Gray Davis yesterday used his emergency powers again toseize a state utility’s defaulted contracts in the California PowerExchange (Cal-PX). In an afternoon press briefing, the governordeclined to discuss the details of the initial long-term powercontracts signed by the state with electric suppliers so far,saying only that an announcement will be made today and will be”positive.”

With various energy players attempting to seize the moment ofintense political and regulatory focus during the first two weeksof December, California electricity proposals are flowing freerthan movie scripts and dot.com start-up business plans are allanticipating the impending state plan from Gov. Gray Davis onFriday and the subsequent final decision by the Federal EnergyRegulatory Commission Dec. 13 for stabilizing California’s powermarkets.