Watch

A congestion study slated to be completed by the U.S. Department of Energy (DOE) before the end of the summer will identify a “watch list” of perhaps 25 to 30 electric transmission “problem areas” and a smaller subset list of those areas “where transmission needs are so large and acute that it is in the national interest to seek near-term solutions,” said Kevin Kolevar, director of the DOE’s Office of Electricity Delivery and Energy Reliability, last week.

With wholesale natural gas prices trending only one way in the wake of the two Gulf of Mexico hurricanes, Pacific Gas and Electric Co. in San Francisco has established a monthly “Natural Gas Watch” bulletin, and its latest issue Friday cited average retail gas utility bills for its customers in October being up by $17.45/month, compared with October last year. That represents an increase of 70.8%, according to the combination utility.

As expected, the natural gas futures market experienced another high-volatility trading session Friday as traders kept an eye on Hurricane Isabel. Prices dove lower during the first hour of trading only to rebound convincingly in the afternoon as traders were reticent to be short heading into the weekend. October finished at $4.766, up 2.8 cents for the day, and down only a scant half-cent for the week.

After carving out an 8.5-cent trading range during the first 50 minutes of trading Tuesday, natural gas futures settled down and chopped lazily sideways for the remainder of the session. The October contract finished at $3.356, down 4.3 cents for the day and just above its $3.34 low. At just 72,545, estimated volume was indicative of a market that is uncertain what forces will impact the natural gas futures market on Sept. 11.

November is the month to watch for colder than normal weather, according to WSI Corp.’s beginning-of-September update to its three-month seasonal forecast. The Massachusetts-based forecaster noted that there will be temperature anomalies this month and into October, but they may have “limited impact” because temperature normals and load levels tend to be significantly lower than summer months.

Mergers and acquisitions (M&A) between U.S. exploration and production companies continued on a slow pace in the second quarter, and unless oil and gas prices sustain a rise in the final half of the year, the lull could continue, as sellers hold their ground and refuse to drop their prices, said Standard & Poor’s in a new ratings round-up of domestic energy companies.

Mergers and acquisitions (M&A) between U.S. exploration and production companies continued on a slow pace in the second quarter, and unless oil and gas prices sustain a rise in the final half of the year, the lull could continue, as sellers hold their ground and refuse to drop their prices, said Standard & Poor’s in a new ratings round-up of domestic energy companies.

Two Democratic senators have urged FERC to set up a consumer advocate position at the Commission to watch over the electric industry and take action when there is a possibility that wholesale market manipulation has resulted in unjust and unreasonable power prices.

This week’s climb in the cash market slowed down Wednesday, butwatch out for the fireworks that are virtually a certainty today.