Support

Dominion Resources Inc. and Consolidated Natural Gas Co. (CNG)have agreed to sell CNG’s Virginia Natural Gas (VNG) distributionsubsidiary in exchange for Virginia regulators’ support for theirproposed merger.

ANR Pipeline has picked up landowner support for its suitagainst the Wisconsin Public Service Commission (PSC) that chargesthe PSC unlawfully kept secret filings made by Wisconsin Gas forits competing Guardian Pipeline.

Given modest support by a small screen gain, most cash tradingpoints tended to level off Thursday instead of continuing a slidethat many had expected would last into the weekend. Northeastcitygates constituted the rare weaker market in the East with dropsof almost a nickel as the region cooled off further from a heatwave that set power generation load records early this week.

Pennsylvania’s Senate convincingly voiced its support for SB601, a gas deregulation bill for residential and small commercial customers, with a 47-3 vote of approval early last week. The bill is now in the hands of Pennsylvania’s House of Representatives Consumer Affairs committee. If the bill is signed into law, each of Pennsylvania’s LDCs would be required to submit a restructuring plan by Nov. 1.

Pennsylvania’s state Senate convincingly voiced its support forSB601, a gas deregulation bill for residential and small commercialcustomers, with a 47-3 vote of approval late Monday night. The billis now in the hands of Pennsylvania’s House of RepresentativesConsumer Affairs committee. If the bill is signed into law, each ofthe Pennsylvania natural gas utilities would be required to submita restructuring plan to the PUC by Nov. 1.

All-around price increases Wednesday received support fromcontrasting weather conditions and rising power generation load(plus a tiny assist from a barely higher screen). Most upticks werein the neighborhood of 4-8 cents, although smaller ones were aslittle as two cents at the PG&E citygate.

With little in the way of fundamental support to speak of, cashprices still managed gains between a nickel and a dime Tuesday atalmost every trading point. “It’s got to be technical,” said autility buyer. The tone was set by the screen opening around $1.80,a dime higher than Monday’s opening, even though the April contracteventually ended the day with a small net loss, he said. Anothersource thought it was a case of cash starting to converge with thescreen.

Current and projected economics will not support any of themajor pipeline expansions to the Northeast from the Midwest atleast until 2004, a new study by Energy ERA, a Calgary, AB-basedenergy consulting firm, concludes. The Portland Natural GasTransmission and Maritimes &amp Northeast pipelines as well as thepipeline expansions currently planned in the Gulf of Mexico will besufficient to meet growing gas demand in the Northeast over thenext few years.

The futures market was pressured lower Tuesday as sellers sentthe February contract tumbling back down to support clustered inthe $1.73-74 area. But once again the move failed to produce a newcontract low, which set off a short-covering rally that bid theprompt month higher just prior to the close. February settled at$1.817, a fraction of a penny off its high for the day and 2.1cents higher than last week’s closing price.