Daily GPI

Michigan Attorney General Jennifer M. Granholm announced Thursday that Energy America, North America’s largest unregulated energy wholesale company, will pay refunds to consumers, reform its marketing practices, and pay the state’s costs for its alleged violations of the Michigan Consumer Protection Act. The action came in response to over 600 customer complaints regarding Energy America’s Michigan natural gas marketing practices.

Following a topsy-turvy span of trading in which prices fell Thursday as quickly as they rose Wednesday, natural gas futures sputtered sideways to slightly higher Friday as traders gently covered shorts ahead of the weekend and the Monday expiration of the August contract. August closed 3.4 cents higher at $2.936. For the second day in a row, volume in the gas pit was heavy with an estimated 171,719 contracts changing hands.

Florida Gas Transmission lifted an Overage Alert Day notice Friday that had been in place since July 15.

Prices recorded gains at all points Thursday, with nearly all of them in double digits. Sources cited the previous afternoon’s run-up in energy futures as the chief price booster, since air conditioning demand remained on the relatively mild side for mid-summer in the key Midwest and Northeast market areas. Increases were remarkably consistent across the market spectrum; few were less than a dime, and a majority ranged between about a dime and a little more than 20 cents.

Like a stunned boxer that twice tries but fails to lift himself off the mat, the natural gas futures market was unable to recover Thursday following the release of storage data from the Energy Information Administration (EIA) showing a larger-than-expected 64 Bcf injection. After dropping a cool 10 cents in 10 minutes following the report, the August contract looked like it might rebound before lunchtime. However, that rally and a similar one in the early afternoon fizzled, leaving prices to sift downward and close just off their lows. At $2.902, the August contract finished with a 14-cent decline for the session.

Prices recorded gains at all points Thursday, with nearly all of them in double digits. Sources cited the previous afternoon’s run-up in energy futures as the chief price booster, since air conditioning demand remained on the relatively mild side for mid-summer in the key Midwest and Northeast market areas. Increases were remarkably consistent across the market spectrum; few were less than a dime, and a majority ranged between about a dime and a little more than 20 cents.

El Paso Energy Partners LP said Thursday it has received clearance from its board and a special conflicts committee to purchase a range of midstream assets from El Paso Corp. for an estimated $782 million. The crown jewel is El Paso’s vast natural gas gathering network in the San Juan Basin in New Mexico.

Like a stunned boxer that twice tries but fails to lift himself off the mat, the natural gas futures market was unable to recover Thursday following the release of storage data from the Energy Information Administration (EIA) showing a larger-than-expected 64 Bcf injection. After dropping a cool 10 cents in 10 minutes following the report, the August contract looked like it might rebound before lunchtime. However, that rally and a similar one in the early afternoon fizzled, leaving prices to sift downward and close just off their lows. At $2.902, the August contract finished with a 14-cent decline for the session.

In a letter to employees Monday, which was later filed with the Securities and Exchange Commission (SEC), El Paso Corp. Chairman William Wise attempted to dispel any fears that the energy giant was in financial trouble, assuring workers it had about $1.5 billion of readily available cash, a balance sheet and credit profile that were “strong and improving,” an investment grade credit rating, and “adequate financial resources” to meet all of the company’s obligations and to maintain “profitable operations” during the current crisis facing the industry.