Summer

Commercial operation began at two CMS Energy gas-firedgenerating plants in Michigan, adding 199 MW of capacity to thestate’s power grid for use this summer. The units, owned by CMSEnergy’s independent power unit, CMS Generation Co., will helpassure electric system reliability during peak demand periods.

Baltimore Gas & Electric expects to see a 65% reduction innitrogen oxide (NOx) emissions this summer as a result of a new gasreburn system installed on two of its coal-fired electricgeneration boilers and the Gas Research Institute is taking credit.

Something good did come out of the power market malfunctions oflast summer, according to Moody’s Investors Service. In a reportreleased yesterday, Moody’s said the experience has triggered a newcommitment to counterparty risk management by energy trading firmsthat will enhance credit quality in the energy sector and inspiregreater confidence in the market.

Citing continuing compressor repairs at Station 13, Northern BorderFriday extended a reduction of system throughput to 90% of summerdesign capacity (see Daily GPI, May 19)through Saturday and Sunday.

Union Gas announced the availability of 2 Bcf of peak storage atthe Dawn Market Hub. The storage permits summer 1999 injection and1999-2000 winter withdrawal. The storage capacity will be awardedbased on a bidding process. All bids are due by 1 p.m. EST onFriday, May 21. The high bidders will be awarded the capacity by 3p.m. EST that same day. The storage hub has six pipelineinterconnects and easy access to 15 pipeline and distributioncompanies, Union Gas said. The complex has a working capacity of130 Bcf and can deliver 2 Bcf/d for customers.

With the advent of ending its electricity rate freeze thissummer and moving to a more volatile pricing environment, San DiegoGas and Electric Co. was given a new incentive rate mechanism todetermine its future utility revenue needs by California regulatorslast week. Current rates will not change because of the new”performance-based ratemaking” (PBR) system, but the system will beused the next time the regulators review SDG&E’s performance.

The United States didn’t see much of a winter, but you can holdonto your hats this summer because the hurricane season may blowyou away.

The United States didn’t see much of a winter, but you can holdonto your hats this summer because the hurricane season may blowyou away.

Natural gas futures, which have been caught in a downtrend sincelast summer, ticked quietly lower yesterday in a dull tradingsession. No fresh news was seen to lift the market higher and as aresult, the March contract was free to follow the overall trend byslipping 1.9 cents to $1.776 at the close. And although the Marchcontract has only slipped 5 cents lower since becoming the promptmonth on Jan. 27, it has dropped a whopping 82.4 cents, or morethan 30% from its $2.60 high set on April 8.