Substantial

It failed to shock anyone when June-ending prices fell fairly hard at nearly all points. Virtually all traders did Thursday deals for flow through Saturday, eliminating the hassles of split nomination periods over a June/July bridging weekend.

With the backdrop of California’s continuing energy upheavals, two of the state’s major energy companies announced substantial first quarter earnings increases that were driven largely by the price and supply volatility for power.

OGE Energy Corp., parent company of Oklahoma Gas and Electric Co. and Enogex Inc., reported a substantial first quarter loss on Monday, blaming the reduction on unfavorable price margins and “strong downward pressure on fractionation spreads.” OGE posted a loss of $15 million, or 19 cents a share, compared with a profit last year of $1.06 billion or one cent a share.

Substantial rebounds in cash prices Tuesday surprised many traders, especially because there were no significant changes in overall market fundamentals, and screen support remained minuscule. Triple-digit California gains led a cash market advance that saw most points gaining at least a dime or more, with “or more” being the key operative words. Increases tended to be smallest in the Northeast (Algonquin citygates were flat) and largest in the Rockies/San Juan market.

Legislation that could give Texas electric customers substantialrefunds because of “unintended windfall” profits made through thecoming deregulation of the state’s utilities is making its waythrough the Texas House. Under the current law, large utilities maykeep earnings made through 2004 to offset the costs of investing innuclear power plants.

Legislation that could give Texas electric customers substantialrefunds because of “unintended windfall” profits made through thecoming deregulation of the state’s utilities is making its waythrough the Texas House. Under the current law, large utilities maykeep earnings made through 2004 to offset the costs of investing innuclear power plants.

Except for falling San Juan Basin and Malin numbers, prices sawfairly substantial rebounds in post-weekend trading Monday. Coldweather prevailing throughout most of the eastern U.S., highlightedby a potentially severe winter storm developing in the Northeast,plus a large loss of offshore production, were primarilyresponsible for the firmness, sources said.

The Deep Panuke gas field, offshore Nova Scotia, is confirmingbeliefs that the Sable Island region may contain the mostsignificant gas finds there in 10 years, with news last week that asecond appraisal well by PanCanadian maxed out the testingequipment, with a flow rate at the well averaging more than 50MMcf/d.

Despite a substantial 16-cent range, the futures market postedits smallest daily move of the entire week on Friday with July onlymanaging a 2.7 cent gain to end the regular trading session at$4.160. August rose 3.5 cents to $4.140. The 12-month strip inchedup to $3.938.