Shaky

A new report by Cambridge Energy Research Associates (CERA)identifies three plausible future paths for the power industry andin particular the transmission sector, which has been plagued bygridlock because of a tangle of infrastructure problems andregulatory uncertainty.

Most cash points continued their rise yesterday, but thepredominantly bullish sentiment among traders that was evidentearlier in the week showed signs of cracking. Few gains exceededmore than a nickel, while the scattered declining points fell nomore than a penny or two.

In what may turn out to be a Pyrrhic victory, bulls weresuccessful on two fronts Friday — testing resistance at $3.00 andposting a gain for the third straight session. However, thoseachievements may have come at a price because even dyed in the woolbulls were shaking their heads after watching heavy selling enterthe market once prices reached over the $3.00 mark.

As cooling temperatures were giving heat ravaged areas from theUpper Midwest to the Southeast much needed relief, the natural gasfutures market was doing its own cooling off early yesterday asprices dipped to the lowest level since July 23. The move lower wasshort-lived and after opening at $2.50 the August contract wasunable to attract follow-though selling, leaving buyers to bid themarket higher throughout the rest of the day. The prompt monthfinished up 3.2 cents at $2.575.

Hoping to solidify the project’s shaky environmental status, Independence Pipeline Co., working with the Ohio Power Siting Board (OPSB), voluntarily agreed to a set of standards intended to protect Ohio’s environment from the construction and operation of the pipeline. The agreement, which was signed by the OPSB in early June, has been forwarded to the Federal Energy Regulatory Commission (FERC) for consideration.

Hoping to solidify the project’s shaky environmental status,Independence Pipeline Co., working with the Ohio Power Siting Board(OPSB), voluntarily agreed to a set of standards last week intendedto protect Ohio’s environment from the construction and operationof the pipeline. The agreement, which was signed by the OPSB inearly June, has been forwarded to the Federal Energy RegulatoryCommission (FERC) for consideration.

After see-sawing 2 cents on either side of unchanged for much ofthe Nymex trading session yesterday, the futures market rumbledhigher late in the day to finish near its high. The June contractfinished up 2.9 cents at $2.302, which places it squarely in themiddle of its recent $2.205-$2.405 trading range. Estimated volumewas a relatively light 32,280.