Strongly

In an emergency request filed Wednesday, Pacific Gas andElectric (PG&E) delivered a strongly-worded ultimatum to FERC -either revoke the authority for sellers to charge market-basedrates in the out-of-control California bulk power market and takeother actions by “no later than the close of business on Dec. 21,”or it will seek relief from the D.C. Circuit Court of Appeals inWashington. At press time Thursday, the Commission had notresponded to the utility’s demands.

Fundamentals began playing a larger role in a rebounding weekendmarket Friday as several sources expressed relief that thepreviously frenetic screen was beginning to calm down.

As if tethered to a bungie cord, natural gas prices bounced backyesterday at the New York Mercantile Exchange as temperatures alongthe East Coast soared into the 90s. Those record-setting readingsalong with stronger crude oil and physical natural gas prices gavetraders the opportunity to reclaim a large portion of last week’sprice slide. The June contract received the biggest boost, pushing14.5 cents higher to finish at $3.17.

The Independent Petroleum Association of America came outstrongly against a tax proposal presented earlier this week byDemocratic presidential candidate Bill Bradley that would do awaywith several loopholes currently benefiting oil and gas producers.

The Independent Petroleum Association of America came outstrongly against a proposal presented earlier this week byDemocratic presidential candidate Bill Bradley that would do awaywith several tax loopholes currently benefiting oil and gasproducers.