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In what was probably its most comprehensive decision onCalifornia since its famed Dec. 15 order, FERC last week announceda series of actions designed to boost energy supply, reduce demandand alleviate the delivery bottlenecks that continue to bedevil thewholesale electricity and natural gas markets in the state andoverall western region.

TradeSpark said yesterday that it has traded energy productswith a notional value of more than $16 billion since opening forbusiness last October. The electronic marketplace said it tradedmore than 1.72 billion Btu of natural gas instruments, with anotional value of more than $9 billion and 141 million MWh ofelectricity instruments with a notional value of about $6 billion.

Since taking over at FERC last month, Chairman Curt L. HebertJr. has presided over two regular Commission meetings with agendason the light side. But he promises activity will pick up soon.

The North Carolina Utilities Commission approved Scanasubsidiary PSNC Energy’s fourth gas rate increase since May. PSNCwas granted an increase from 98 cents per therm to $1.18 per thermfor year around residential customers. The 20% hike goes in effectin January and translates into an annual cost of $160. The ratesPSNC Energy is charging customers are 50% higher than in January2000. On average, residential customers can expect to see around a$340 per year increase to their natural gas bills as compared tolast year. “With plenty of gas in storage for peak demand duringcold winter days, we’re prepared to meet our customers’ demand forgas throughout the winter” said PSNC Energy President Charles E.Zeigler. “At the same time we want to help our customers manage theimpact of higher heating bills.” PSNC is franchised to serve a28-county service area in North Carolina and distributes naturalgas to 360,000 winter-peak customers in 95 cities and communities.

With record high spot and futures prices last week, continuedcold weather and bullish supply and demand projections, LehmanBrothers didn’t pick a bad week to raise its Henry Hub priceforecasts by about 20% for both 2001 and 2002.

CMS Energy President and COO Victor J. Fryling will leave thecompany effective Dec. 20, the company announced yesterday.

In the sixth asset alliance since their 50-50 venture was formed in 1997, NRG Energy Inc. and Dynegy Inc. expanded their generation portfolio in the western United States last week with the purchase of one power plant and buying most of the generating capacity of another plant from Nevada Power Co. for $634 million. Minneapolis-based NRG will be operator and Houston-based Dynegy will serve as power marketer and fuel supplier.

Two wrongs do not make a right, but they do make for somevolatility in the natural gas pit. Since December’s precipitousclimb to $6.32 last week, the prompt month has vacillated wildly— first lower and then higher, prompting traders to suggest thosemoves were a little bit overdone. However, last Wednesday’s movehigher received some validation Friday when prices bounced offsupport and erupted higher to once again close in the $6-plus pricestratosphere. After trading within a wide, half-dollar tradingrange, the December contract finished the week strongly, up 30.2cents at $6.10.

The cash market finally shook off the price weakness that haddominated it since late last week as most points ranged from flatto up about a nickel Tuesday, with some in the Rockies/San JuanBasin achieving dime-plus gains. However, with traders still unableto perceive see any significant weather load on the horizon and thescreen falling more than a quarter, the cash firmness was expectedto be short-lived.