Severely

As Canada continues its own struggle to refill gas storage, the country’s southern neighbor is feeling the brunt of the impact in the form of severely reduced imports, according to Jefferies & Co. analyst Frank Bracken. For the first week of June, Canadian exports logged their lowest weekly level in six-years.

Severely depressed basis spreads in the Rocky Mountain region “scream the message of shut-in gas,” yet very few pipeline expansions have been put in place to solve the problem, noted energy consultant Mary Menino of Energy Security Analysis Inc. She predicts that export constraints will continue to plague the Rockies market as long as power generators and producers are unwilling or unable to sign firm agreements for pipeline transportation capacity on expansion projects.

Despite the current investment climate in the merchant power plant market, Energy Security Analysis Inc. (ESAI) projects that the Northeast should still see a significant amount of new generating capacity come on-line over the next two years. It’s the post-2003 period, however, where recent tightening in project financing will have the greatest supply impact, ESAI said in a recent memo to clients.

Northwest continued to bar any on-system balancing or bankingMonday, saying its operational flexibility was “severely limited”by storage accounts being almost full.

Five boat crewman were burned severely last Wednesday night whentheir two tugboats apparently ran smack into a Sonat feeder lineabout six miles east of Venice, LA, causing a rupture and a largeexplosion. The injured crewman had to be airlifted to theUniversity of Alabama’s regional burn center. The fire wasextinguished by about 11 p.m.

Five boat crewman were burned severely Wednesday night whentheir two tugboats apparently ran smack into a Sonat feeder lineabout six miles east of Venice, LA, causing a rupture and a largeexplosion. The injured crewman had to be airlifted to theUniversity of Alabama’s regional burn center. The fire was put outby about 11 p.m.

California Gov. Gray Davis has signed a bill severely limitingthe future of retail gas unbundling in the state, keeping it on aseparate, more restricted track than electricity. AB 1421 replacesa one-year ban on further gas unbundling passed last year by thestate legislature. The measure was strongly backed byinvestor-owned utilities and utility unions.

California Gov. Gray Davis has signed a bill severely limitingthe future of retail gas unbundling in the state, keeping it on aseparate, more restricted track than electricity. AB 1421 replacesa one-year ban on further gas unbundling passed last year by thestate legislature. The measure was strongly backed byinvestor-owned utilities and utility unions (see Daily GPI, Sept.13).