ARCO to Cut $500 Million Expenses, 900 Employees

ARCO announced a major cost reduction program last week thatwill chop $500 million in before-tax expenses and 900 employeesfrom it operations over the next two years. The majority of thecut-backs, $350 million, are expected in 1999.

October 19, 1998

All Markets Rising for a Change, But Why?

For the first time in several trading days, there was nodivergence between Eastern and Western market directions Wednesday.It was up, up and away all around as nearly all points registeredgains of around a dime or higher.

October 15, 1998

EIA Lowers ’98 Price Forecast, Sees Strong 1Q99

The Energy Information Administration has lowered its wellheadprice forecast for the year by several percentage points but saidwellhead prices during the first quarter of 1999 should show a hugeincrease (28%) from average prices during this year’s warm firstquarter.

October 12, 1998

Consolidation Increases Pipes’ Power

Advising that pipeline monopoly power has increased with theconsolidation which has been going on over the last several years,Rebecca McDonald, an executive with Amoco and chairman this year ofthe Natural Gas Supply Assoc., warned against a reduction inregulatory oversight.

October 9, 1998

Atlanta Gas Light Services Agrees to New Name

Atlanta Gas Light Services, the retail marketing subsidiary ofGeorgia LDC Atlanta Gas Light, reached a compromise with retailmarketers and state regulators Wednesday, and agreed to change itsname to Georgia Natural Gas Services. The company will retain theuse of its flame logo, however.

August 21, 1998

Steelmaker’s Bid for Power Price Caps Widely Opposed

Several power marketers and utilities have called on FERC todismiss a complaint by an Indiana steelmaker that accuses AmericanElectric Power (AEP) and unnamed power marketers of capitalizing onthe upheaval in the Midwest electricity markets in June by engagingin “abusive price gouging.”

August 13, 1998

Maine PUC Calls for Multiple Franchises

The Maine Public Utilities Commission is allowing several gasdistribution companies to compete to provide new service tomultiple areas in the state. The commission approved, subject tocertain conditions, the formation of CMP Natural Gas by CentralMaine Power and Energy East Corporation (parent company of New YorkState Electric & Gas) last week and gave it authorization toplan gas distribution services in the Augusta, Waterville, Bangor,Windham, Bethel, Bath/Brunswick and the southern coastal areas, allof which would be receiving gas service for the first time.

July 27, 1998

Most Points Post Big Gains Based on Early Screen

The bullish sentiment for the aftermarket that several tradershad expressed Tuesday (see Daily GPI, July 1) appeared to bejustified Wednesday as price increases of a dime or more dominatedmost points. The old refrain of “following the screen” was popularagain. But as the screen leads up, so shall it also lead back down,according to some prophecies, and so it was Wednesday. Early pricelevels were retreating late as Henry Hub futures gave up earlygains. Henry Hub cash started at $2.48-49 but fell as low as $2.40late, a marketer said.

July 2, 1998

Northern Border Will Jiggle Market

The coming Foothills/Northern Border expansion will impact gasprices and gas flows in several ways, according to a new report byPIRA Energy Group. Foothills/Northern Border will carry 700 MMcf/dfrom Alberta to the Midwest. Completion is expected Nov. 1.

April 30, 1998

Retail Advancing at Snail’s Pace

Enron’s announcement last week that it will be terminating itsresidential power marketing efforts in several states should be awake up call for the gas industry as well, where the pace of changetoward retail competition has been a disappointment for manyobservers.

April 27, 1998