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No news was good news on Monday – at least to the bears – as themarket continued to take back gains registered last week in frantichurricane-related trading. That prompted the October contract todrop 7.3 cents to settle at $2.187 yesterday as traders searchedfor any indication that Hurricane Georges (pronounced ZHORZH) wouldaffect natural gas interests in the Gulf of Mexico.

Florida Power &amp Light Co. announced plans last week toaccelerate by one year an expansion of its power generating system.The expansion will take place in phases with the first phase beingcompleted in 2001. In total, the expansion will add 2,500 MW of newgas-fired generation capacity at three power plant locations overthe next eight years with the majority coming on line by 2003.

The bears were at it again at Nymex on Tuesday, prompting someanalysts to suggest the downtrend that has weighed on the marketfor over 4 months has resumed. The September contract was thehardest hit by the selling pressure, moving down 5.8 cents to$1.983 on the day.

Customer-owners of three Michigan power co-ops – Great LakesEnergy Cooperative, Top O’Michigan Electric Co., and WesternMichigan Electric Cooperative – have approved a three-way merger totake effect next Jan. 1, creating the third largest Michigan-basedutility and the eight largest customer-owned power company in thenation.

LG&E Energy Corp. said it is discontinuing power marketingoperations and will take a $231.8 million after-tax loss in thesecond quarter mainly because it was forced to cover fixed-pricedpower marketing agreements when Midwest power prices went throughthe roof last month, reaching $7,000/MW compared to $30/MW justdays prior. The company was among the top 10 largest powermarketers (by volume sold) in the country last year.

California regulators are scheduled today to take additionalsteps to open up the natural gas business by removing allrestrictions to the core aggregation program and unbundling gasutility billing services so nonutility firms can compete to providethat function. The actions are part of a larger program aimed atmaking a final decision on gas industry restructuring by the end ofthis year.

What was widely considered a bearish storage report combinedwith falling Nymex futures prices to deal the cash market a losinghand Thursday as most delivery points lost about eight cents onaverage.

The Senate Committee on Energy and Natural Resources hasscheduled a hearing for July 22 to take up the nomination of BillRichardson, current U.S. ambassador to the United Nations, to behead of the Department of Energy.

Columbia Energy Group reported its second-quarter earnings weredown $16.6 million, or 20 cents per share, from 2Q97 primarilybecause temperatures in its service territory were 38% warmer thanlast year. Despite the loss, however, CEO Oliver G. Richard IIIsaid the company “continued to show improvements in operations,”citing reductions in operation and maintenance costs and a 57%increase from exploration and production operations. Richard alsonoted the massive expansion of Columbia’s customer-choice programsin Ohio and Pennsylvania, which have given 85% of its utilitycustomers the ability to choose their gas supplier.