Sent

The cash market largely ignored weakening weather fundamentals Friday and sent prices higher at most points. Only plunges in the Rockies and at Transco Zone 6-New York City ran contrary to the overall firmness.

Power grid operators across the Northeast, Midwest, Mid Atlantic and Ontario sent out power shortage warnings and calls for conservation again last Wednesday, as the early summer heat continued to bake the regions with 90-100 degree temperatures and high humidity, driving up power usage and prices.

The Alaska House of Representatives has sent a strong message to gas producers, who so far have been pessimistic about building a privately-owned pipeline system to transport Alaska’s vast natural gas resources to markets in the Lower 48 states: “Build it or we will.” The House passed a bill last Monday sponsored by Rep. Jim Whitaker (R-Fairbanks) to authorize a feasibility study of the state building its own gas line.

Traders not only talked about the weather Wednesday, but also did something about it: namely, sent spot prices skyrocketing by 30-60 cents or more in most cases. The biggest increases came at frigid Northeast and Midwest citygates, topped by gains of nearly 80 cents at Transco’s Zone 6-NYC pool.

Mirant’s diversified global portfolio and growing gas merchant business in North America sent third quarter earnings soaring, with earnings from operations totaling $234 million or 67 cents per diluted share, compared to $119 million or 35 cents per diluted share for the third quarter, 2000. CEO Marce Fuller said the earnings have given the Atlanta-based company “increasing confidence in our ability to achieve earnings per share of $2.55 to $2.65 next year, and to grow off that base by at least 20% on average in subsequent years.”

Energy companies were sent mixed market signals as analysts last week were trying to deal with and digest warnings of a possible recessionary economy, widespread stock sell-offs and teetering stock prices on a Wall Street that still was recovering from the destruction caused by terrorist air assaults.

The addition of the prolific Ladyfern discovery in northeast British Columbia, which began flowing one month ago, has sent Alberta Energy Co. Ltd.’s natural gas production soaring, producing more than 150 MMcf/d, the company said Friday. AEC’s current gas production with Ladyfern now equals 1.5 Bcf/d, the highest for any Canadian producer, and 40% higher than the company’s average for all of 2000.

The addition of the prolific Ladyfern discovery in northeast British Columbia, which began flowing one month ago, has sent Alberta Energy Co. Ltd.’s natural gas production soaring, producing more than 150 MMcf/d, the company said Friday. AEC’s current gas production with Ladyfern now equals 1.5 Bcf/d, the highest for any Canadian producer, and 40% higher than the company’s average for all of 2000.

The four Northwest governors recently sent a joint letter to the Bonneville Power Administration (BPA) supporting BPA’s actions to avoid huge, wholesale rate increases and resulting damage to the Northwest region’s economy.