Skeptical

Stressing that the state has more than adequate power supplies this summer and in future summers, the California Energy Commission (CEC) last week raised its estimates of power reserve levels after 2005 as part of a generally upbeat future power update by the state’s agency handling power plant siting and energy planning. The energy agency sees reserve margins in California as high as 20% this summer.

Shrugging off Thursday’s expiration-day sell-off, natural gas futures rebounded Friday, as traders took their cue from cold weather expected over the weekend and stronger cash market prices. The newly-crowned spot month February received the biggest buying boost, advancing 15.5 cents to finish the week at $2.774. Estimated volume of just 53,169 was evidence many traders elected to remain on the sidelines ahead of the weekend.

Although the state appears to have all the elements in place to successfully open its electricity markets to competition, the chairman of the Mississippi Public Service Commission (PSC) continues to harbor serious doubts as to how such a move will accrue to the benefit of the state’s retail customers.