Stepped

Conoco Inc. stepped forward this week to help lead Canada in the northern pipeline race, with CEO Archie Dunham paying a call on Calgary as his company takes possession of Gulf Canada Resources Inc. Three weeks after the C$9.8 billion (US$6.3 billion) takeover deal won Canadian government approval and closed on stock exchanges, Dunham declared bringing Mackenzie Delta gas to market to be Conoco’s “number one priority,” and said “the market needs it so we need to strike while the timing is good.”

In the near-term, gas prices could easily drop below $4/MMBtu because of the rapid rise in storage levels this spring. But summer prices likely will spike above $6, and the long-term forecast shows prices will average between $4 and $5, said Robert Morris of Salomon Smith Barney at NGI’s GasMart/Power in Tampa last week. However, Morris doesn’t expect recurring winter peaks above $10/MMBtu.

In the near-term, gas prices could easily drop below $4/MMBtu because of the rapid rise in storage levels this spring. But summer prices likely will spike above $6 and the long-term forecast is that prices will average between $4 and $5, said Robert Morris of Salomon Smith Barney yesterday at NGI’s GasMart/Power in Tampa. However, Morris doesn’t expected recurring winter peaks above $10/MMBtu.

Less than a week after California’s governor plucked David Freeman to head the state’s stepped up, $850 million energy conservation program, the nation’s largest municipal utility in Los Angeles turned to a consultant and former head of a Texas private sector utility to replace Freeman as its general manager. Texan-turned-California-based consultant, David Wiggs Jr. will oversee the $3 billion LA Department of Water and Power (LADWP) for five months, beginning May 1. During that time it is expected that the incoming new LA mayor will launch a nationwide search for a permanent replacement for Freeman, who has attained near-star status at LADWP and in other roles helping Gov. Gray Davis wrestle with the ongoing crisis among investor-owned utilities in the state. A utility regulatory lawyer with a finance background, Wiggs served as chairman, COO and president of El Paso Electric Co., leading the utility’s turnaround in the early 1990s. Since 1997, he has been a consultant, at DHW Consulting of Newport Beach, CA,working briefly with DWP in the spring of 1997 before Freeman was brought on board. He recently served as chief energy adviser to the speaker of the state legislature’s Assembly.

California regulators Tuesday took several steps to implement higher electricity rates and stepped up load management, assure payment to the state’s wholesale power buying program and examine whether the parent corporations for the three largest investor-owned utilities have done enough to assure their financial viability during the persistent crisis surrounding supplies and prices.

While the Southern California border stepped up its headlongrush to rejoin the overall gas market and the other two Californiapoints saw big losses, all other points experienced only mildsoftness Wednesday. Only Texas Eastern-Kosciusko and two Northeastpoints (into Algonquin and Iroquois Zone 2) fell more than a dimeamong the non-California markets.

Even with stepped up state efforts for developing peakingplants, conservation and new power contracts, the key wild card forwhether California survives this summer’s expected supplyshortfalls is fickle hydroelectric power that is tied to anunpredictable, complex set of weather and environmental factors.With the end nearing for the West’s typical rainy season, stateofficials are newly optimistic about California’s hydro resourcesbeing at normal levels this summer, but in the Pacific Northwestthe prospects continued to be dour Monday as Seattle basked insunny, 60-degree weather.

Rusty Braziel, the founder of electronic trader Altra EnergyTechnologies Inc. based in Houston, stepped down as chairmanyesterday to oversee the launch of his new e-markets consulting andsoftware company, Netrana. Although Braziel will remain on Altra’sboard of directors, CEO Paul Bourke assumes the chairman’s role andwill now set growth and operating strategies.

While various market participants and analysts are advising astepped up construction schedule for new power plants, oneCalifornia community may be getting the message.