Daily GPI

You could have got a nose bleed watching gas futures yesterday.A 1.5-cent gap higher to $2.700/MMBtu at the opening bell triggereda buying panic that sent October Henry Hub futures up 23.9 cents to$2.851. Estimated volume came in at a massive 116,601 contracts.

The New York State Public Service Commission approved anapplication by Empire State Pipeline to construct a newinterconnection with CNG Transmission Corp. facilities in OnondagaCounty, NY.

According to a recent survey, one in six U.S. consumers, or 17%,say they can now choose their energy suppliers. However, only 2%have actually changed providers.

One year after opening its entire Ohio territory to retail gassupplier competition, Columbia Gas of Ohio said nearly 500,000customers, or about one-third of those eligible, are buying gasfrom marketers rather than the utility. Columbia serves 1.3 millioncustomers in the state.

The lights didn’t go out in Georgia or anywhere else in NorthAmerica during an industry-wide testing of electric utility systemsfor potential computer glitches that could mar the transition tothe new millennium, according to officials with the North AmericanElectric Reliability Council (NERC).

Mitchell Energy & Development Corp. announced it enteredinto a letter of intent yesterday to purchase Conoco’s 50% interestin the Jameson processing plant and the associated 2,600-mile gasgathering system for an undisclosed sum. The plant, located in WestTexas, is currently owned evenly by Conoco and Mitchell.

UtiliCorp United agreed to sell its West Virginia Power divisionto Allegheny Energy Inc. for $75 million in cash. In addition,separate transactions include a 20-year supply agreement forUtiliCorp’s Aquila Energy unit to provide gas to Allegheny, and anagreement for Allegheny to purchase Appalachian Electric Heating,UtiliCorp’s heating and air conditioning service operations in WestVirginia. A spokesman said details of the gas supply and otheragreements are confidential.

Standard & Poor’s today affirmed the ratings of Duke EnergyCorp. and related entities and assigned a negative rating outlook.

The Public Utility Commission of Ohio (PUCO) filed a statementwith the federal Securities and Exchange Commission (SEC)supporting the merger of Dominion Resources Inc. and ConsolidatedNatural Gas Co. The PUCO told the SEC that the agency wouldcontinue to exercise jurisdiction over the regulated activities ofThe East Ohio Gas Co., CNG’s gas distribution company in Ohio, andthat the merger would have no impact on its ability to protect theinterests of Ohio ratepayers. The PUCO’s approval is not needed,but the commission conducted a review at the request of East OhioGas.