Sizeable

Volatility was starting to build in the cash market again Thursday as nearly all points recorded sizeable losses. Triple-digit declines occurred in a variety of disparate markets: Northeast, Midwest, Pacific Northwest, Western Canada, San Juan Basin and California (Malin and PG&E-Topock), and at isolated points such as Dominion and Northern Natural-Ventura. Numbers for the Gulf Coast, Midcontinent, Rockies and Columbia-Appalachia production area, along with the Southern California border and PG&E citygate, tended to range from barely lower to down about 85 cents or so.

Sizeable declines at New England points and small ones on a couple of Rockies pipes were the major exceptions to continued moderate bullishness in the rest of the cash market Thursday. Most points ranged from flat to about a quarter higher. Much like the day before, a majority of gains were in the teens.

Juno Beach, FL-based FPL Group Inc. said late last week that it is restructuring its wholesale energy and telecommunications businesses in response to current challenging market conditions. In connection with the announcement, FPL said it expects to take one-time, non-cash restructuring and other charges in the range of $140 million to $175 million after tax in the third quarter. Despite the charges, the company reaffirmed that it expects 2002 earnings of $4.70-4.75 per share, excluding nonrecurring items.

Small to sizeable gains at Rockies, Pacific Northwest and Western Canada points Wednesday contrasted with continuing mild softness elsewhere. Scattered points were essentially flat, but most of the cash market recorded declines of 2-8 cents.

Small to sizeable gains at Rockies, Pacific Northwest and Western Canada points Wednesday contrasted with continuing mild softness elsewhere. Scattered points were essentially flat, but most of the cash market recorded declines of 2-8 cents.

Adding to the list of energy trading companies that have seen a sizeable jump in business since Enron Corp. filed for bankruptcy earlier this month, Sequent Energy Management, the wholesale marketing and supply arm of Atlanta-based AGL Resources Inc., said that its business volumes have risen nearly 300% since the energy giant announced Chapter 11.

IntercontinentalExchange Inc. (ICE) and International Petroleum Exchange Ltd.(IPE) reported sizeable increases in volumes transacted at the close of the first quarter, with significant growth in most product categories. The New York Mercantile Exchange Inc. (Nymex) also reported that March trading activity set monthly records for overall volume and for a number of products.

Following the sizeable Western Gulf of Mexico Lease Sale 180 held by the Interior Department’s Minerals Management Service (MMS) last week, many exploration and production companies were quick to report their deals. Kerr-McGee Oil & Gas Corp. and partners reported that they were the high bidders on 42 blocks, Pioneer Natural Resources Co. was the apparent high bidder on 21 blocks and Devon Energy Corp. reported that it was the high bidder on nine blocks.

Online power trading over the past six months in the United States has continued to grow by a sizeable percentage, but most wholesale power deals still are being done the old-fashioned way through traditional voice brokerages, according to the latest survey from Energy Argus Inc. The company said its data revealed that Internet-based trading now makes up 38% of trading in the country, up from 28.5% in February and 25% in April 2000.