Slows

At an annual meeting yesterday, Avista Corp. CEO T.M. Matthewsunveiled a new strategy that will include the purchase of 10% ofAvista’s common stock and will defer any major acquisitions soAvista can concentrate on the company’s existing energy business.

Retail unbundling in the California natural gas market is”currently being undermined” by Dynegy Marketing and Trade’swithholding of firm transportation capacity on El Paso Natural Gas,the head of the California Public Utilities Commission (CPUC) saidThursday. As a remedy, CPUC President Richard A. Bilas called onFERC to implement regulations prohibiting the “hoarding” ofpipeline capacity and to investigate allegations of anticompetitiveconduct, which he contends was prevalent in the Dynegy-El Pasocontract arrangement.

The upward track of cash prices continued Wednesday, but at asnail’s pace compared to Tuesday’s skyrocketing pyrotechnics. Mostof the new increases were quite meager, ranging from a penny or soto about a nickel. The first significant winter weather that manyareas have seen so far this season was credited with keeping theNovember price rally going, albeit modestly.

Cash prices started out Tuesday playing catch-up with the Nymexscreen’s late increases on Monday, but wound up either flat or withsmall gains after futures reversed field. Only supply-constrainedSumas managed an increase of more than about 4 cents, and numberswere down a few cents on some Rockies pipes and at NorthernCalifornia market points.

The relatively small declines in Eastern markets Fridaysurprised some traders. Although down another 2-5 cents overall,pipes in the Gulf Coast and Midcontinent were rebounding late tolevels essentially flat from Thursday. The weakness in Thursdayafternoon’s Access futures trading pushed prices down early Friday,a marketer said, “then things came back up when the Merc showed alittle strength.” Although the screen eventually shed its gains towind up basically unchanged, that occurred too late to impact cashtrading.