As natural gas storage levels last week erased the long standing deficit when compared to last year’s levels, turning it into a surplus for the first time since January 2000, analysts are being forced to take another look at their natural gas price forecasts for the remainder of 2001 and for full year 2002.
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Gas Storage Deficit Erased; Could Storage Reach A New High?
Forecasters expecting the long standing storage deficit compared to last year’s levels to be wiped out on Wednesday got their wish. With the winter gas futures months holding attractive premiums for storage arbitrage and gas demand apparently reduced because of high winter prices, an unprecedented series of weekly storage injections over the past five weeks has led to a year-to-year surplus for the first time since January 2000.
CPUC Votes to Raise California Rates
After being delayed a half-hour by chanting consumers opposingrate increases in a standing-room-only hearing room, the CaliforniaPublic Utilities Commission Tuesday raised electric rates on apermanent basis by up to 40%. The CPUC also took other actionsdirecting the two of the state’s major investor-owned utilities toresume paying small independent power producers known as”qualifying facilities” (QFs) and the state Department of WaterResources for wholesale spot supplies.
Yukon Eyes Mexico as Potential LNG Market
Yukon Pacific Corp. has come up with a “slightly new twist tosupplement” its long-standing project to supply Asian markets withAlaskan liquefied natural gas (LNG), and in fact company executiveswere in Mexico yesterday to sound out officials there about it.
Western Buys CA Pipes then Sells them to Calpine
Denver-based Western Gas Resources earlier this week exercisedits long-standing option to buy 170 miles of proprietary gaspipelines in the Sacramento Basin and promptly sold the network oftwo- and 10-inch-diameter pipes to California-based merchant powerplant developer Calpine Corp. No dollar figures on the deals willbe released, and both companies are expected to make formalannouncements later this week or early next week, according toWestern Gas and Calpine.
Southern Co. CEO Touts Country-wide Growth
“We are standing on the doorstep of some of America’s largestenergy-consuming markets: Boston, New York City, Chicago,Dallas-Fort Worth, San Francisco and Los Angeles. We believe therewill be about a half-dozen national energy providers. SouthernCompany intends to be one of those companies.”
FERC Rejects Trailblazer Settlement Contested by Amoco
Amoco’s objections and its standing as a major customer ofTrailblazer Pipeline have made it impossible for the Federal EnergyRegulatory Commission to approve a settlement on new rates, FERCsaid in dumping the dilemma back in the lap of an administrativelaw judge.
Columbia Files to Negotiate Service Terms and Conditions
Columbia Gas Transmission and Columbia Gulf Transmissionyesterday followed through on a long-standing promise to provideFERC with some new regulatory ideas in the area of negotiated termsand conditions of service. The transmission subsidiaries ofColumbia Energy filed a proposal to establish a new regulatorymodel called Standard/Customized services. Columbia said it’s the”next logical step in the evolution of pipeline regulation andnatural gas markets.”