Thursday

The slippery slope on which cash prices started sliding earlierthis week got steeper Thursday. As on Wednesday, the softness wasbeing felt in both the late-February incremental and March bidweekmarkets.

The overall tone of the cash market remained flat Thursday, buta growing number of points were recording tiny decreases. Thetouches of softness came even as an eastbound cold front reachedthe nation’s midsection, reminding regions that had beenexperiencing record seasonal warmth recently that winter isn’tquite over yet. One source speculated that prices may be finallystarting to crack under the strain of having maintained theirpositions during a long period of no fundamentals support. Even thearrival of some for-real weather fundamentals may not be enough toprovide support, he said.

Nipsco Industries reached the brink of gaining a valuable eastcoast influence Thursday as the SEC approved a merger betweenNipsco and Massachusetts-based Bay State Gas Co. The $780 millionmerger was originally announced in December of 1997. Both sides arereviewing final documentation and no other regulatory matters arepending. Nipsco expects the deal to close today.

General Electric (GE) announced Thursday it has entered into ajoint venture with Plug Power, a Latham NY-based company dedicatedto the development and manufacturing of fuel cells, to market fuelcells worldwide. Terms of the transaction were not disclosed. Thetwo companies will combine efforts to form a new company called GEFuel Cell Systems. GE will own 75% of the new company, with PlugPower owning the rest. GE also acquired 10% of Plug Power ownershipin the deal.

The Chicago Mercantile Exchange announced Thursday it has filedfor regulatory approval to offer exchange-traded, heating degreeday (HDD) and cooling degree day (CDD) futures and optionscontracts. The CME said these indexes will help companies manageweather-related financial risks. A start date will be set afterCommodity Futures Trading Commission (CFTC) approval.

Significantly increasing its presence in the Northeast, SempraEnergy’s marketing arm, Sempra Energy Trading, agreed Thursday tomanage the supply and delivery of gas to serve Southern ConnecticutGas Co.’s 158,000 customers. Terms of the one-year agreement werenot disclosed. Sempra will begin April 1.

Attempting to reach energy consumers on both coasts, SouthernCalifornia Gas Co. said Thursday it hopes to offer its Internetmarketplace to customers in New York, Massachusetts, Illinois,Pennsylvania, and Georgia in the very near future. The expansionwas announced as part of the formal launching of power trading onthe company’s energy market web site, www.energymarketplace.com.

None of Williams’ three main subsidiaries matched 1997 earningslevels, the company said Thursday, as it announced a total 1998 netincome of $140.7 million, or $0.31 per diluted share, down from$368.3 million, or $0.85 per diluted share in 1997. For the fourthquarter, Williams posted a net loss of $20.2 million or $0.05 perdiluted share versus a net income of $57.5 million or $0.13 perdiluted share in 1997. Company officials blamed poor marketconditions, large accrual and impairment amounts, and disappointingresults in the communications business as reasons for the poorperformance.

Evergreen Resources, Inc. announced Thursday the acquisition of41,000 gross Raton Basin acres from Infinity Inc. affiliate, CISOil and Gas, for $8.5 million. Evergreen estimates this additionwill increase its coal-bed methane proved net gas reserves by 22.5Bcf. The company now holds working majority interest in 200,000acres in the basin. The effective date of the transaction was Dec.31, 1998.