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Enerfax Daily NORTH AMERICA'S FREE POWER AND GAS INFORMATION SOURCE Friday, January 11 2002 No. 903 Visit: http://www.enerfax.com/ or for Oil Prices & News http://www.enerfaxgold.com/ PHYSICAL NATURAL GAS PRICES Gulf/Eastern Region | Agua Dulce | 2.15 | | ANR SE | 2.26 | | Carthage TG | 2.23 | | Chicago Citygate | 2.22 | | Columbia Gulf Onshore | 2.30 | | Dominion South Point | 2.38 | | Henry Hub | 2.32 | | Houston Ship Channel | 2.28 | | Katy Hub | 2.22 | | NGPL LA Pool | 2.19 | | NGPL - Midcontinent | 2.12 | | NGPL STX | 2.18 | | NGPL TX/OK | 2.18 | | NNG Demarc. | 2.14 | | Niagara | 2.50 | | Sonat Tier 1 | 2.26 | | TCO IPP Pool | 2.40 | | Tetco ELa | 2.30 | | Tetco M-3 | 2.62 | | Tetco STX | 2.15 | | TGP Zone 0 | 2.17 | | TGP Zone 1 (500 Leg) | 2.24 | | TGT Zone SL | 2.29 | | New York Citygate | 2.67 | | Transco Station 65 | 2.36 | | Transco Zone 6 (NY) | 2.67 | | Trunk ELa | 2.23 | | Western Region | California Border | 2.13 | | El Paso Keystone | 2.05 | | El Paso San Juan-Blanco | 2.04 | | Waha Hub | 2.11 | | Canadian/Rockies Region | Nova/Aeco (C$/gig) | 2.97 | | Dawn Hub/Union | 2.29 | | Northwest Stanfield | 1.97 | | Wyoming Pool | 1.92 | | Opal/Kern River | 1.93 | | PGT-Malin | 2.06 | | Sumas | 1.98 | Flow Date 1/11 ------------------------------------------------------------- NATURAL GAS FUTURES Henry Hub 12 Month Strip 2.5184 -0.0226 18 Month Strip 2.6545 -0.0315 | Month | High | Low | Close | Change | | FEB | 2.300 | 2.170 | 2.185 | -0.043 | | MAR | 2.300 | 2.190 | 2.195 | -0.037 | | APR | 2.320 | 2.250 | 2.245 | -0.021 | | MAY | 2.390 | 2.300 | 2.315 | -0.017 | | JUN | 2.470 | 2.390 | 2.390 | -0.012 | | JUL | 2.520 | 2.450 | 2.460 | -0.007 | | AUG | 2.570 | 2.510 | 2.508 | -0.009 | | SEP | 2.580 | 2.450 | 2.518 | -0.013 | | OCT | 2.600 | 2.560 | 2.550 | -0.016 | | NOV | 2.825 | 2.780 | 2.770 | -0.024 | | DEC | 3.040 | 3.000 | 2.990 | -0.031 | | JAN | 3.160 | 3.090 | 3.095 | -0.041 | ------------------------------------------------------------- Allegheny Energy Supply Company, Salt River Project (SRP) and Sempra Energy Resources announce Open Season for proposed Desert Crossing Gas Storage and Transportation System. Open Season for customers interested in capacity begins Jan. 10, 2002 and extends through Feb. 8, 2002. For information, visit www.desert-crossing.com ------------------------------------------------------------- Natural Gas Futures Dip Lower in Late Sell-Off Natural gas futures for February delivery on the NYMEX dropped $0.043 yesterday to $2.185 per MMBtu, stymied by local and trade selling on the close. The March contract lost $0.037 to $2.195 per MMBtu. The market opened higher and hit $2.30 early on the strength of Wednesday's AGA storage report of a 190 Bcf withdrawal last week, the largest since 1994. However, the market worked its way lower for most of the day until a bearish weather forecasts, including a prediction of the return of El Nino, contributed to a sharp drop off below $2.20 thirty minutes before the close as paper and trading houses liquidated. The market is in contango, with each succeeding contract more expensive. The price for the February contract has fallen more than $0.55 since assuming the prompt position on December 28th. Look for more weakness today as the fundamentals deteriorate. Storage and weather are the keys to this whole market, and both are bearish. Look for the market to test weekly lows at $2.14 today. Yesterday, an estimated 83,000 contracts trading, with 41,000 spreads or hedge trades. Few utilities were seen in the physical market yesterday, and prices held a $0.04 - $0.05 premium to the NYMEX, well below the $0.12 premium seen Wednesday. As weather moderates, utilities tend to switch off storage and turn to the physical market for natural gas needs, creating a price squeeze in some markets as that extra supply dwindles. Natural gas for next day delivery across the US and Canada was generally flat to up slightly. Natural gas for next day delivery at the Henry Hub gained $0.01 to $2.32 per MMBtu. ------------------------------------------------------------- Exploit the enterprise-wide transaction management power deployed by the big names in gas. NUCLEUS Software ZAINET Gasmaster The most comprehensive, totally-integrated natural gas information system available today. Ask about out limited-time offer competitive upgrade program. CAMINUS Your Competitive Edge in Energy. Call Caminus at (212)515-3700 or visit the website at www.caminus.com ------------------------------------------------------------- Today's Power Bulletins * Energy Secretary Abraham Recommends to President Bush that Government Open Yucca Mountain Facility in Nevada to Store Nation's High-Level Nuclear Waste * New York State Files Federal Lawsuit Against Niagara Mohawk Holdings and NRG Energy Alleging Violations of Clean Air Act at 2 Coal-Burning Power Plants in Western NY * Calpine Receives Commitments for $1 Billion Unsecured Working Capital Credit Facility; Increases Total Bank Financing to $4.9 Billion * PG&E Submits Summary of Remaining Objections to Bankruptcy Court * Puget Sound Energy Receives Second National Award as 2001 Top Utility; Electric Light & Power Cites Personal Energy Management Program as Basis for Honor * BC Hydro Issues International Request for 5.5 Million Tonnes of Greenhouse Gas Offsets * Survey Confirms Good Security at Nuclear Power Plants ------------------------------------------------------------- DO YOU JUST SEE TREES? WE SEE A FOREST! See the forest with NewEnergy MarketPower by efficiently obtaining information for critical market-based investment decisions and mitigate your risk. Use MarketPower to determine the effects of transmission congestion, fuel costs, generator availability and load growth on market prices to better execute your company's strategic direction. Designed specifically for today's energy industry, MarketPower is accurate and easy-to-use, so you can plan for tomorrow...today! New Ideas...New Solutions...NewEnergy. For a free 30-day trial visit us at http://www.NewEnergyAssoc.com/justdownloadit or call us at 770 779 2957 for more information ------------------------------------------------------------- New Energy Argus Regional Heating and Cooling Demand Measurements The market for weather derivatives received a boost this week with the creation of new statistical instruments that measure heating and cooling demand throughout the US. The exclusive indices from Energy Argus represent seasonal weather in the US sliced 47 different ways: by major natural gas pipeline, power trading hub or Federal Reserve region. The indices were created through analysis of the weather market and discussions with its top participants, including energy traders and marketers, utilities, insurance and financial service firms. The trading of weather involves buying and selling options and other derivatives to protect against fluctuating temperatures or precipitation. Weekly updates of the indices can now be found in Weekly Weather Plays, dedicated to the market for weather derivatives. The Energy Argus publication, launched this week, is also the provider of independent market assessments for the most popular weather transactions, and features key information for weather traders. ------------------------------------------------------------- FAST. FLEXIBLE. PROVEN. The AURORA(TM) electric market model helps you deal with the challenges and risks of today's energy marketplace. Exceptionally fast and easy to learn, AURORA(TM) reflects fundamental market drivers and gives power marketers, resource developers and portfolio managers a better way to manage against market uncertainty and price volatility. AURORA delivers - ? Price forecasts - hourly, daily, weekly, monthly, yearly ? On-peak, off-peak pricing ? Resource valuation and net power costs ? Portfolio analyses ? Capacity expansion analyses ? Effects of emissions ? And much more . . . AURORA's comprehensive databases cover all electricity markets throughout the U.S. and Canada. The model also handles storage, congestion pricing, and offers detailed reporting and data export capabilities. It can be used as a stand-alone tool or be integrated with your other business tools. Visit us at www.epis.com or call (503) 722-2023. EPIS, Inc. Market Information Solutions for the Electric Power Marketplace ------------------------------------------------------------- Natural Gas NYMEX Volume 02FEB 39,590 02MAR 16,381 02APR 8,143 02MAY 3,443 02JUN 3,749 02JLY 3,221 02AUG 1,860 02SEP 1,166 02OCT 3,425 02NOV 974 02DEC 1,738 03JAN 1,466 03FEB 1,077 03MAR 867 03APR 343 03MAY 192 03JUN 309 03JLY 335 03AUG 185 03SEP 123 03OCT 707 03NOV 2 03DEC 101 04JAN 3 ------------------------------------------------------------- GET REAL about energy risk management with KWI In today's fast moving energy markets you need to be able to manage risk in real time. That means knowing before you hit a risk problem, not afterwards when it may be too late to prevent big losses spreading right through your enterprise. With kW3000(tm), our multi-commodity, integrated front to back office software, you can monitor your Profit At Risk(tm), counterparty risk and mark-to-market all in real time. Keep alert to risk. Do it in real time. Call KWI -Americas: +1-281-681-3301 / Europe: +44 (0) 20-7386-2700 / Asia Pacific: +61(0) 2-9976-6111 http://www.kwi.com/ -------------------------------------------------------------- Open Season for Desert Crossing Pipeline Allegheny Energy Supply, the Salt River Project, and Sempra Energy Resources which are planning to build a natural gas storage and pipeline system in the Southwest are taking bids from companies for capacity through the system. The open season will last until February 8th, and will gauge industry interest in the proposed Desert Crossing project. The response will determine the scope of the system, whose initial costs are likely to be $600 - $700 million. The Desert Crossing project, pending regulatory approval, would include a 10 Bcf natural gas storage complex in Arizona and an 800 MMcf per day pipeline running from near Las Vegas to southwestern Arizona. The 300-mile pipeline system would connect the storage complex with all of the major interstate natural gas pipelines in Arizona and southern Nevada. The pipeline is expected to be ready for operation by the summer of 2004, while the storage facility would begin incremental service in 2005 with full service forecast in early 2008. The storage complex would allow hourly access to natural gas, permitting customers to tap supplies to meet unexpected surges in demand from power plants. ------------------------------------------------------------- ENERGY. @ENERGY(r), FEA's Complete Suite of Energy Products, BUILT FOR THE FUTURE. *Manage all your energy risks. *Build and Price deals. *Value physical assets (generation, storage, etc.) *Report and reduce your energy risks FEA FINANCIAL ENGINEERING ASSOCIATES Inc. http://www.fea.com/?cId=17 main phone number: 1 510-548-6200 email address: info@fea.com ------------------------------------------------------------- PHYSICAL POWER PRICES | | High | Low | Average | | | $/MWh | $/MWh | $/MWh | | Cinergy | 20.00 | 13.00 | 17.15 | | ECAR | 20.00 | 13.00 | 18.05 | | ERCOT | 18.25 | 18.00 | 18.25 | | Entergy | 20.00 | 15.00 | 17.85 | | TVA | 23.25 | 20.70 | 21.45 | | ComEd | 17.25 | 16.75 | 17.15 | | Nepool | 30.00 | 28.25 | 29.45 | | PJM West | 23.65 | 22.75 | 22.90 | | Main | 18.00 | 16.75 | 17.30 | | MAPP | 19.25 | 16.00 | 17.55 | | Palo Verde | 19.50 | 17.00 | 18.65 | | Mid C | 17.50 | 16.75 | 17.15 | | COB | 18.25 | 17.50 | 18.05 | | 4 Corners | 18.75 | 17.75 | 18.35 | | Mead | 19.25 | 18.75 | 19.05 | | NP 15 | 20.00 | 18.50 | 19.20 | | SP 15 | 20.00 | 18.75 | 19.35 | Power Delivered 1/11 ------------------------------------------------------------- - RISK MANAGEMENT Across the Energy Enterprise e-Acumen, Inc., is uniquely positioned to help you manage risk and increase value. That's because our analytics, data and applications cover all strategic aspects of the energy enterprise, from short-term forecasting to comprehensive risk analysis and portfolio optimization, to asset valuation and weather risk management. Dedicated to the needs of energy and trading companies in a dynamic and competitive world, our approach combines best-in-class physical fundamentals with industry-leading statistical methodologies. e-Acumen is a venture-backed company founded in January, 1997. Since then we have listened attentively to the market and assembled a stellar cast of seasoned energy industry professionals and Silicon Valley technologists. Join us as we help the industry continue its path toward liquidity and profitable, risk-managed growth in the exciting years ahead! Click here to find out more about current special offers, or go to http://www.e-acumen.com ------------------------------------------------------------- Todays Gas Bulletins * Enron Collapse Entangles Bush Administration * Federal Judge's Decision to Move Enron Bankruptcy Case Still Pending * 500 Ex-Enron Employees and Investors File Lawsuit Charging Fraud, Civil Conspiracy and Negligence * Attorney General Ashcroft Removes Himself from Enron Case * Congressional Probe to Examine Enron Impact on Energy Bill * Westcoast Energy Receives Supreme Court of British Columbia Approval for Acquisition by Duke Energy * Highland Compressor Station Start-Up Increases Vector Pipeline Capacity to 1 Bcf per Day * Ballard, Tokyo Gas, EBARA Ballard and EBARA Enhance Relationship * Shell Marine Habitat Program Grants $1.2 Million for Gulf of Mexico Conservation Projects ------------------------------------------------------------ Enron Considers Bids for Trading Business at Auction Enron is negotiating with at least 6 potential buyers of its wholesale trading business at an auction. The winning bidder will assume control of 51% of Enron's online trading unit, which generated about 90% of the company's $100.8 billion in revenue in 2000. A hearing is scheduled for today to approve the sale. Enron is met with the bidders in six conference rooms in its New York law offices, going from room to room making comments to the effect that if you want to have the best offer you at least have to make the following improvements to your bid. Every bidder had a different offer and some proposals are more complete than others. Enron's trading unit buys and sells oil, petroleum products, natural gas, electricity, metals, coal, forest products and steel, and a variety of contracts and derivatives. Enron would get cash and a 49% stake in a new partnership called 'Netco' under the proposed sale. Citigroup has submitted a bid, and UBS AG, the largest Swiss bank, also made an offer. BP has offered $25 million for Enron computer systems for trading natural gas and electricity. The banks hope to profit from as much as $7 billion in previously arranged trades and gain a better shot at collecting money they are owed by Enron. Bids might total as much as $1 billion in cash and debt. ------------------------------------------------------------ Ziff Energy Group presents Gas Storage 2002 Redefining the Fundamentals: Is Gas Still in the Storage Game? Power Drives Storage Will the recession affect plant and storage development? Will record high volumes in storage further depress gas prices? Is it possible to mitigate storage risk while dealing with year-round price volatility? Plus Two Important Workshops Calpine Corporation Hear what the Power Generator wants from the storage industry Bruce Bernard Learn from the expert how to mitigate storage price risk in the 2002 gas marketplace February 6 & 7 Houston Four Season Hotel 1300 Lamar Street Register Today for this Important Conference Call 1-800-853-6252 Email: gasconference@ziffenergy.com Visit: www.ziffenergyconferences.com ------------------------------------------------------------- NYMEX Natural Gas Futures Swap Session Closed Today The NYMEX will shutdown Henry Hub natural gas swap trading on the ACCESS session after 9 AM EDT today to allow maintenance on the exchange's computer systems. There currently is no further explanation or how long the maintenance will last. Traders use the over-the-counter swap system to determine where bidding will begin when the usual outcry session opens at 10 AM EDT. Marketers will have to look at ICE or the Dynegy Direct exchange to determine the market while the NYMEX computers are down. ------------------------------------------------------------- R. W. Beck is an engineering and management consulting firm serving utilities, developers, financiers and governments worldwide. Founded in 1942, we help our clients face energy market challenges by providing: Portfolio Analysis to improve diversification and risk-adjusted performance of energy assets. Risk Control services to help reduce the probability of losses. Systems and Facilities services to identify, design and implement effective risk management systems. Training to improve your ability to identify and manage tactical and strategic risks. Please visit our web site at http://www.rwbeck.com ------------------------------------------------------------- Andersen Disposed of Enron Documents Enron's accounting firm, Andersen, has admitted its employees disposed of or deleted a number of documents related to its audit of Enron. Andersen, which has come under fire from investors and lawmakers for signing off on Enron's books, said it had notified the SEC, the Justice Department and congressional committees and other agencies investigating Enron's collapse. In recent months individuals in the accounting firm involved with the Enron engagement disposed of a significant but undetermined number of electronic and paper documents and correspondence relating to the Enron engagement. The SEC's enforcement chief says that the destruction of documents was an extremely serious matter. In testimony before Congress last month, Andersen CEO said it had warned Enron of possible illegal acts, but said it had failed to provide the auditor with key information. Some industry experts say the deliberate destruction of key document can be tantamount to an admission of guilt. The ramifications could be huge. Most accounting firms keep their audit records for at least 4 years. Anderson says it has suspended its records management policy immediately and has instructed all its partners and employees to retain all existing documents until further notice. ------------------------------------------------------------- POWER FUTURES | Month | COB | Change | PV | Change | | FEB | 22.00 | +0.00 | 22.50 | +0.00 | | MAR | 21.00 | +0.00 | 22.00 | +0.00 | | APR | 21.00 | +0.00 | 24.00 | +0.00 | | MAY | 20.00 | +0.00 | 25.00 | +0.00 | | JUN | 21.00 | +0.00 | 30.00 | +0.00 | | JUL | 29.00 | +0.00 | 40.00 | +0.00 | | AUG | 39.50 | +0.00 | 44.25 | +0.00 | | SEP | 35.00 | +0.00 | 35.00 | +0.00 | | OCT | 26.00 | +0.00 | 26.25 | +0.00 | | NOV | 25.00 | +0.00 | 26.25 | +0.00 | | DEC | 27.00 | +0.00 | 26.25 | +0.00 | | JAN | 27.00 | +0.00 | 26.00 | +0.00 | | Month | Entergy | Change | Cinergy | Change | | FEB | 19.50 | -0.30 | 21.35 | -0.35 | | MAR | 20.35 | -0.25 | 22.35 | -0.25 | | APR | 20.35 | -0.25 | 22.35 | -0.25 | | MAY | 23.60 | -0.55 | 25.75 | -0.35 | | JUN | 29.75 | -0.50 | 33.00 | -0.50 | | JUL | 38.00 | -0.75 | 42.75 | -0.75 | | AUG | 38.00 | -0.75 | 42.75 | -0.75 | | SEP | 22.00 | +0.50 | 23.00 | -0.60 | | OCT | 22.25 | -0.25 | 23.20 | -0.05 | | NOV | 22.25 | -0.25 | 23.20 | -0.05 | | DEC | 22.25 | -0.25 | 23.20 | -0.05 | | JAN | 24.50 | -0.25 | 26.25 | -0.25 | ------------------------------------------------------------- Power Futures | Month | PJM | Change | | FEB | 25.25 | +0.00 | | MAR | 24.85 | +0.00 | | APR | 24.85 | +0.00 | | MAY | 28.40 | -0.20 | | JUN | 36.10 | -0.15 | | JUL | 49.60 | -0.30 | | AUG | 49.60 | -0.30 | | SEP | 25.40 | +0.20 | | OCT | 25.20 | +0.00 | | NOV | 25.20 | +0.00 | | DEC | 25.20 | +0.00 | | JAN | 28.80 | -0.10 | ------------------------------------------------------------- Lay Called Cabinet Members to Warn of Possible Bankruptcy Enron Chairman Lay called the secretaries of the Treasury and Commerce departments prior to the company's collapse to warn them the company could be in financial trouble or go bankrupt. In the call to the Treasury secretary, Lay referenced Long-Term Capital Management, a hedge fund that got a $3.5 billion bailout from Wall Street which was engineered by the Federal Reserve. Lay informed the secretary of Enron's problems and raised the possibility that they may have an effect on credit markets similar to that of LTCM. The secretary told Lay that he would pass the information on to officials at Treasury who found no signs of ripple effects. Lay told the Commerce secretary that he was worried that the decision to downgrade Enron's bond rating would lead to bankruptcy, with harmful effects to the energy industry and the economy as a whole. After Lays calls, the cabinet members both agreed that no action should be taken to intervene on the part of bondholders. Neither informed the president of their conversations until yesterday morning. The president said that he has not spoken to Lay since last spring. President Bush has announced the creation a task force to review corporate disclosure rules after Enron's bankruptcy. The task force includes the secretaries of the Commerce, Treasury and Labor departments and officials from the SEC, the Federal Reserve and the CFTC. ------------------------------------------------------------ Energy Seminars, Inc. Announces Key Seminar Offerings for January: Energy Seminars will be going to Florida and Calgary in 2002! Click to www.energyseminars.com to see our 2002 schedule. Register on-line at http://www.energyseminars.com or call Registrar Gina Patrick Phone: 281-362-7979 FAX: 281-296-9922 -------------------------------------------------------------------------------------------------------------------------- California AG Files Civil Lawsuit Against PG&E California's attorney general has filed a civil suit against PG&E, the parent company of the states Pacific Gas and Electric utility, alleging its fraudulent business practices drove the utility into bankruptcy. The lawsuit asks for damages of $600 million to $4 billion and any other penalties that might be awarded. The state's attorney general contends that PG&E drained the assets of its California utility, saying that money went from the utility to the parent company and then to unregulated PG&E units. PG&E said that the lawsuit was unwarranted, discriminatory and potentially harmful to the California economy. The company pointed out that the PUC and state lawmakers have reviewed its transactions with affiliates and found no illegalities. The attorney general charges that PG&E violated 22 conditions set by the PUC to protect customers from the potential risks and abuses of a holding company structure. According to the conditions, PG&E was prohibited from using money from the utility to fund its unregulated businesses and was directed to give first priority to the utility's need for capital in the event it experienced financial difficulties. The AG claims that during a 3-4 year period, the utility gave more than $4.6 billion in cash to PG&E, $1.76 billion in shareholder dividends and stock buybacks. ------------------------------------------------------------- Progas Storage Services, Inc Was recently organized to offer specialized natural gas storage services to marketers and end users servicing the upper Midwest and Northeast market regions along the major transmission systems in Indiana, Illinois, Kentucky, and Michigan. PGSMI has 10 bcf of potential working capacity which will offer service along TXG, ANR, Midwestern, and is currently evaluating for purchase another 21 bcf of potential working capacity which can be serviced by these and other systems in the region. PGSMI also explores for natural gas in the Gulf Coast region through a wholly owned subsidiary. Progas intends to go public through a route of private industry offerings, and an IPO or registration. For more information on services or the company mail to: gastorage@aol.com or for AOL mail to gastorage@aol.com; The company's executive and administrative office is located in Abilene, Texas with storage operations in Owensboro, KY and exploration operations in Corpus Christi, TX. Vist our website http://www.progas.net/wip Progas Storage Services, Inc 8610 S. Hwy 277 Abilene, TX 79606 Ph 915 698 3699 Fx 915 698 2859 ------------------------------------------------------------- FINANCIAL SUMMARY The TSE 300 dipped 53.40 points to 7722.38 The CRB Index slid 0.10 points to 195.03 The US Dollar decreased 0.19 points to 116.75 The Dow declined 26.16 points to 10067.86 The S&P 500 climbed 1.41 points to 1156.55 The Nasdaq was up 2.35 points to 2047.24 February NYMEX Crude Oil rose 0.20 to 20.38 Canadian-US Exchange added 0.0061 to 1.3011 ------------------------------------------------------------- Pure Text, Lotus, AOL, Yahoo, Excite, Readers-subscribe by writing to: enerfax-subscribe@egroups.com Outlook Email Readers-subscribe to webmail by writing to: mailto:join-EnerfaxDaily@relay.netatlantic.com ------------------------------------------------------------- Washington DC January 24, 2002 Spencer Abraham U.S. Secretary of Energy to address energy community on potential security and commerce threats. Also to speak will be key directors from the CIA, SPR, IEA, SPR and more. See complete detail and register today at http://www.wesc.org ------------------------------------------------------------- Please welcome our advertisers by visiting these websites. http://www.e-acumen.com http://www.kwi.com/ http://www.fea.com/ http://www.caminus.com/ http://www.progas.net/wip http://www.ziffenergyconferences.com/ http://www.energyseminars.com http://www.desert-crossing.com http://www.epis.com http://www.rwbeck.com http://www.NewEnergyAssoc.com enerfaxtext, forward to delete@enerfax.com to unsubscribe.
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