The New York Public Service Commission yesterday directednatural gas utilities to take several measures to improve supplyreliability this winter for interruptible customers, and setrequirements for marketers to have firm transmission pipelinecapacity from November through March.
Take
Articles from Take
Shell to Globalize Trading Activities
The Royal Dutch/Shell Group is planning to integrate itsworldwide trading activities under one banner in order to takeadvantage of energy trading opportunities. ‘Shell Trading’ will actas a singular worldwide network of Shell’s trading activities.
Nevada Utilities Take Earnings Hit
Although Nevada utilities took in stride all-time record peakelectric demand last week, drawing on a diverse supply portfoliothat includes about one-third purchased power deals under long-termfixed-prices, the major energy holding company, Sierra PacificResources, reported a $20.2 million net loss for the second quarterended June 30. The red ink was attributed to $70 million ofunanticipated fuel and purchased power price increases that werereported by the company last month.
Futures Spike Propels Cash Well Above Index Levels
It sure didn’t take long for the August aftermarket to jump wellabove indexes, one market observer said. Boosted by screen strengthand the anticipation of closer to normal summer weather eventuallyinvading key northern market areas, all points except Malinregistered double-digit gains Wednesday.
Industry Briefs
DukeSolutions entered into an agreement with the Bank of Americayesterday to take over its energy management functions on 4,800properties. The five-year contract will allow the nation’s largestbank to focus on its customers and core business, whileDukeSolutions lowers the company’s annual energy costs.DukeSolutions will provide energy supply information management tothe bank’s numerous properties to help reduce the approximate $110million in annual energy costs.
Futures Check Lower as Traders Liquidate August Longs
The sell-off continued yesterday in the natural gas pit at Nymexas traders continued to take profits following the rally to $4.715last month. After gapping lower for the second day in a row, theAugust contract chopped mostly sideways before finishing at $3.66,down 5.5 cents for the session.
Futures Gap Lower, Take Out Key Support
Natural gas futures continued lower yesterday as follow-throughselling on the heels of Friday’s disappointing close conspired withweaker cash market prices. Perhaps more bearish than its 11.9 centdecline, however, was the fact that August gapped below key channelsupport at $3.80 on the open. Traders agree that while breaking andsettling below support is bearish, gapping through can be acrushing blow for a market.
GA Bankruptcies, CA Woes Hinder Deregulation
Two retail marketer bankruptcies in Georgia and the legislativeand regulatory retrenchment in California should take most of theblame for the slowdown in gas deregulation nationwide, according toMarie Lihn, principal economic analysis manager for the GasTechnology Institute (GTI) (see related stories this issue). Anationwide preoccupation with electric restructuring has not helpedthe gas cause either, she said in an interview regarding a new GTIstudy on gas deregulation.
GA Bankruptcies, CA Woes Hinder Gas Dereg
Two retail marketer bankruptcies in Georgia and the legislativeand regulatory retrenchment in California should take most of theblame for the slowdown in gas deregulation nationwide, according toMarie Lihn, principal economic analysis manager for the GasTechnology Institute (GTI). A nationwide preoccupation withelectric restructuring has not helped the cause either, she said inan interview regarding a new GTI study on gas deregulation.
Cash Market Settles Down to Mostly Flat Trading
The cash market appears to have decided to take it easy at leasttemporarily. Tuesday’s activity remained relatively subdued, andfew points strayed much further than 2-3 cents to either side offlat.