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The Transco pipeline system’s capacity has increased by 204,099Dth/d with the start-up of the SouthCoast Expansion project. The$108 million expansion provides additional firm transportationcapacity to gas markets in Alabama and Georgia

AGL Resources Inc. has closed on its $533 million acquisition ofVirginia Natural Gas, more than two months ahead of schedule andprior to the start of the winter heating season.

They may have to start handing out seat belts at Nymex justprior to the release of American Gas Association’s weekly gasstorage report each Wednesday. In a span of only a few minutesfollowing the 2 p.m. report of a 65 Bcf injection last week intostorage, September futures spiked to $4.565, its highest levelsince June 28, but then immediately plummeted back into the low$4.40s.

The board of directors of the New York Mercantile Exchange hasamended plans to move up the start-up time for natural gas futurestrading because of the overlap with crude oil markets, which sharean options ring with natural gas. Daily gas futures trading nowwill commence at 9:30 a.m. rather than 9:45. The board hasscheduled expanded energy trading hours to begin with the Sept. 8trading session.

NGPL reminds that today is the start of its open season forcapacity from Chicago and other points on its system to the Eastunder its capacity exchange deal with TETCO. NGPL is marketing the”seamless” transportation service under its new HubAmerica program.The open season to determine the level of customer interest endsJune 15. Contact Bruce Page, director of HubAmerica, (877) 482-2637

Comprehensive legislation to restructure the electricityindustry appears to have gotten a jump-start in the Senate.

Having the merry month of May start today gave Friday’s tradingfor the weekend something of a split personality, but except for afew western points there was no need for a psychiatrist. There waslittle appreciable difference between prices for Saturday/Sundayand Monday-only in most cases, sources said.

Semco Energy reported net income of $12.0 million or $0.67 pershare for the first quarter of the year a 12% increase from the$0.60 per share on net income of $10.4 million for the firstquarter of 1999. “We are off to a good start in meeting our goalsfor the year, despite the third year in a row of warmer than normalweather,” said CEO William L. Johnson. “Had temperatures for theperiod been normal, we would have reported record first quarterearnings of approximately $0.82 per share in 2000 compared toweather-normalized earnings of $0.63 per share in 1999.” Theincrease in earnings was attributable primarily to higher earningsfrom gas distribution, offset partially by seasonal losses from itsconstruction business. Volumes of gas sold and transportedincreased from 25.2 Bcf in the first quarter of 1999 to 39.3 Bcf inthe first quarter of 2000. The increase is attributed primarily tothe operations of the recent acquisition in Alaska offset partiallyby the impact of warmer weather. Temperatures for the first quarterof 2000 were 11% warmer than normal and also warmer than the firstquarter of 1999 when temperatures were 2% warmer than normal.

Last week’s announcement by Montana Power that it is getting outof the energy utility business may be the start of a new push toseparate electric transmission and distribution, with an increasein merchant transmission proposals, spurred by both shareholdersand regulators of the utilities, according to one of the nation’sfirst merchant power transmission companies. U.S. electrictransmission systems collectively represent a $70 to $90 billionset of assets.