Unexpected

Acknowledging that a combination of unexpected generator outagesand sustained hot weather could create the threat of power outagesthis summer, the California Independent System Operator (Cal-ISO)launched a new alert system for gaining enough voluntaryconservation by businesses and mass consumers to ride out thepeak-demand periods. Calling it “Power Watch 2000,” Cal-ISOPresident/CEO Terry Winter said he anticipates that both short- andlong-term the state can use market-based programs to addresspotential shortfalls.

Acknowledging that a combination of unexpected generator outagesand sustained hot weather could create the threat of power outagesthis summer, the California Independent System Operator (Cal-ISO)launched a new alert system for gaining enough voluntaryconservation by businesses and mass consumers to ride out thepeak-demand periods. Calling it “Power Watch 2000,” Cal-ISOPresident/CEO Terry Winter said he anticipates that both short- andlong-term the state can use market-based programs to addresspotential shortfalls.

An outage of the Sea Robin Plant will be extended by two days torepair unexpected damage found during combuster inspection. Thedamage was one part of the gas turbine and unrelated to thecombuster. The plant is expected to resume processing on or aboutApril 19.

Due to unexpected maintenance on its TL-342 line affectingdeliveries into the PL-1 market, CNG canceled all interruptible andnon PL-1 secondary service Tuesday until further notice.

El Paso found unexpected damage in its inspection of the WhiteRock No. 2 turbine. The unit remained down through Friday, cuttingSan Juan Basin capacity by 200 MMcf/d. The pipeline expected tocomplete repairs by late Friday afternoon, but said because itcould not raise San Juan capacity until the unit could be tested,the constraint would remain in effect for Cycles 1 and 2 ofSaturday’s gas day.

NGPL reported experiencing an unexpected pipeline outageSaturday south of Station 304 on the Gulf Coast Mainline. Untilfurther notice NGPL is unable to flow volumes from six receiptpoints in Panola County, TX.

Except for small upticks in San Juan Basin and related pointspartially due to an unexpected compressor station outage (seeTransportation Notes), the cash market again was mildly softerMonday. Much like last week, a screen decline of about a nickelprovided about the only influence meaningful to cash traders. Evensome cool weather returning to the Midwest failed to keep Chicagoand Michigan citygates from dropping 2-3 cents, while Midcontinentfield numbers were mostly flat.

“It just goes to show you. This gas market doesn’t make muchsense,” a marketer said. Her comment reflected the chagrin of manytraders Thursday when late-January cash prices tended to firm by upto a nickel instead of falling as generally expected. Most sourceshad been sure Wednesday that the anemic storage withdrawal figurereported by AGA (92 Bcf) would lead to cash softness. Sourcesprofessed to have no clue as to what was propping up prices in theface of no fundamental support, although one suggested the strongFebruary futures close might have given cash a psychological boost.