Daily GPI

Blasting two U.S. senators’ plan to set up an energy commissionto investigate recent high natural gas and oil prices, North DakotaGov. Ed Schafer said last week the proposal would result in nothingbut finger pointing, and he asserted that there is no “quick fix”to the nation’s energy problems.

Slightly cooler temperatures in many major eastern marketregions dropped cooling demand a few notches yesterday, but alleyes quickly turned to the northwestern Caribbean Sea whereTropical Depression 11 appeared poised for a weekend visit to theGulf of Mexico.

Buoyed by storm concerns and another overnight session dominatedby buyers, natural gas futures jumped higher yesterday to post yetanother all-time record high. After opening right on top ofprevious resistance at $5.10, the October contract raced to its$5.223 high during the first 90 minutes of trading, triggering buystops on the way up. October finished just off its high at $5.195,up 14 cents for the session.

Major Alaska producers BP Amoco, Phillips Petroleum and ExxonMobil told a Senate committee yesterday that they collectively arepursuing plans to build a pipeline to deliver North Slope naturalgas to the Lower 48 states, and hope to file an application withFERC and seek other permitting by as early as next year.

The Federal Energy Regulatory Commission voted out a conditionalcertificate at yesterday’s regular meeting for the proposed 70-milelong Horizon Pipeline to carry 380 MMcf/d from the Joliet, IL, hubinto northern Illinois.

El Paso Energy and Coastal Corp. announced plans yesterday torelocate more than 1,200 employees and retain only satelliteoffices at the El Paso Natural Gas headquarters in El Paso, TX, andthe ANR Pipeline headquarters in Detroit, MI, once their merger isapproved by the FTC, which is expected sometime in the fourthquarter. No final decision on staff reductions has been made, an ElPaso spokeswoman said.

FERC yesterday gave Petal Gas Storage the go-ahead to expand anexisting interconnect between its storage facilities in Mississippiand affiliate Tennessee Gas Pipeline, despite strong objectionsfrom shippers that the company was displaying affiliate preference.It also granted Petal’s request to continue market-based pricingfor existing and expanded storage services.

Sounding more like a visionary guru than a hard-charging CEO,Dynegy’s Chuck Watson offered up his forecast yesterday forsuccessful energy companies of the future, telling participants atEnergy Economy 2000 in Houston that businesses will need to own thetechnology they use, recruit and keep technical talent and mostimportantly, transform their companies from the traditionalasset-driven formula to a knowledge-driven strategy by embracingthe Internet.

After selling more than 27.4 million MWh in the second quarter— an increase of 93% over second quarter 1999 — Baltimore-basedConstellation Power Source says it is on track to realize itsvision of becoming a first-class national merchant energy company,standing in eighth place for wholesale electric power marketersbased on sales volume. It was in 57th place just three years ago.