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Cash prices moved sharply lower on Friday for the Columbus Day weekend despite the surprisingly rapid rise in the natural gas futures market. While November futures ended the day up more than 30 cents, mild weekend weather and weak demand left cash with nowhere to go but down. Most points tumbled 10-20 cents, which put many locations back down near bidweek levels.

New Orleans-based Entergy Corp. expects to exceed its earnings estimate by at least 10 cents in the third quarter, and now expects to exceed its earnings guidance for the entire year 10-20 cents, benefiting from stronger than expected wholesale energy marketing and trading sales and continued improvement in the regional economy.

With three hour-plus conference calls over four business days, TXU Corp.’s management team offered assurances that the corporation was liquid and strong. The losses, they kept reminding analysts and investors, were only within its European affiliates. By the end of the week, the Dallas-based corporation appeared to have calmed jittery investors, as management made clear that TXU Europe Ltd. and its entities will always be secondary to the success of the U.S. business.

Natural gas futures vaulted higher Friday in heavy activity as traders covered shorts ahead of the first blast of cold weather expected across most of the country this week. After easily piercing psychological resistance at $4.00, the November contract paused near the $4.10 mark as traders caught their breath. However, it turned out to be only a quick break and prices rallied into the closing bell. November finished at $4.146, up 31.8 cents for the session and within striking distance of the recent top at $4.25.

The continued slowdown in capital spending by U.S. producers will keep pushing natural gas production down at a rate of 1-1.5% per quarter “for the foreseeable future,” but the decline also will sustain higher gas prices, according to two investment analyst groups.

Shares of Allegheny Energy Inc. were off by more than an eye-popping 50% at one point last Tuesday after the company said that it is in technical default under its principal credit agreements and those of its subsidiaries, Allegheny Energy Supply Company LLC and Allegheny Generating Co., after it declined to post additional collateral in favor of several trading counterparties.

This winter is expected to be close to normal on a national basis, with the eastern United States expected to be colder than the West, according to Salomon Smith Barney’s (SSB) “2002-2003 Winter Outlook” released Friday. The outlook was authored by the investment group’s noted meteorologists, Jon Davis and Mark Russo.

The Public Utilities Commission of Ohio (PUCO) last Thursday initiated an in-depth review of the financial condition of the state’s major public utilities in order to ensure that unregulated affiliate activities do not negatively affect the financial condition or service quality of the regulated utilities serving Ohio. Utilities based in Ohio include American Electric Power (AEP), FirstEnergy, Cinergy and DPL.

Illinois Power (IP) on Wednesday agreed to sell its high-voltage electric transmission system for $239 million to Trans-Elect Inc., an independent transmission company. Facilities to be sold include approximately 1,700 miles of 345,000-volt and 138,000-volt transmission lines, 20 transmission substations and the transmission assets within an additional 40 substations.