Warm

Florida Gas Transmission extended an Overage Alert Day that began Tuesday through at least Wednesday, citing forecasts of warm weather in Florida. The tolerance for negative daily imbalances was loosened to 25% Wednesday from 20% the day before.

Citing forecasts of “extremely warm weather” for its service area, MRT said a System Protection Warning (SPW) will take effect at the start of Tuesday’s gas day until further notice. Under the SPW, all shippers must balance receipts and deliveries, and MRT said it will not allow imbalances that result in an overdelivery of supplies into its system.

If this winter proves neither too cold nor too warm, with overall normal heating degree days (HDDs), natural gas storage should be tighter than last year but still well above 10-year norms, according to energy consultant Stephen Smith. However, he said the notion of being “well above” 10-year norms will offer little comfort to those concerned about high natural gas prices.

Citing a forecast of warm weather in Florida and lower linepack, Florida Gas Transmission issued an Overage Alert Day notice Thursday with 35% tolerance for negative daily imbalances. However, with Hurricane Wilma approaching, “the possibility of operational concerns about high linepack and low linepack both exist,” FGT said. The pipeline added that it will have to make decisions concerning Overage or Underage Alert Day notices on a daily basis, and “will try to afford customers as much flexibility as possible while first maintaining operational reliability.”

Citing the continuing interruption of Gulf of Mexico supplies caused by Hurricane Katrina and warm weather in Florida, Gulfstream said Thursday an OFO that it had initiated Tuesday will remain in effect until further notice. See the bulletin board for the OFO’s conditions.

“Keep the lights on and keep the people warm. Keep listening to the customer…I think when we have failed to do that on both the power and gas side, industry has suffered and the country has suffered,” departing Chairman Pat Wood said when asked for his advice to commissioners and staff of the Federal Energy Regulatory Commission and the energy industry.

Florida Gas Transmission ended Friday an Overage Alert Day notice that had been in effect for the previous four days, but cautioned that due to warm weather in Florida, another such notice could be issued soon.

With heat levels starting to ease off in the South and a mild warm-up trend approaching in the Midwest, the diminution of weather-related load was enough to allow prices to retreat across the board Wednesday. Negative prior-day guidance from the screen contributed to the softening effect.

Calgary-based Canadian Superior said last week that unusually warm weather in February and March, which resulted in a premature spring breakup, led to a “slight, temporary decline” of 7% in oil and natural gas production during the first quarter.