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Enerfax Daily
NORTH AMERICA'S FREE POWER AND GAS INFORMATION SOURCE
Thursday, January 17 2002 No. 907
Visit: http://www.enerfax.com/ or for Oil Prices & News
http://www.enerfaxgold.com/
PHYSICAL NATURAL GAS PRICES ??
Gulf/Eastern Region
| Agua Dulce | 2.24 |
| ANR SE | 2.32 |
| Carthage TG | 2.30 |
| Chicago Citygate | 2.38 |
| Columbia Gulf Onshore | 2.36 |
| Dominion South Point | 2.50 |
| Henry Hub | 2.39 |
| Houston Ship Channel | 2.37 |
| Katy Hub | 2.31 |
| NGPL LA Pool | 2.31 |
| NGPL - Midcontinent | 2.24 |
| NGPL STX | 2.26 |
| NGPL TX/OK | 2.27 |
| NNG Demarc. | 2.32 |
| Niagara | 2.58 |
| Sonat Tier 1 | 2.35 |
| TCO IPP Pool | 2.49 |
| Tetco ELa | 2.38 |
| Tetco M-3 | 2.84 |
| Tetco STX | 2.26 |
| TGP Zone 0 | 2.27 |
| TGP Zone 1 (500 Leg) | 2.32 |
| TGT Zone SL | 2.37 |
| New York Citygate | 2.98 |
| Transco Station 65 | 2.43 |
| Transco Zone 6 (NY) | 2.99 |
| Trunk ELa | 2.33 |
| Western Region
| California Border | 2.29 |
| El Paso Keystone | 2.19 |
| El Paso San Juan-Blanco | 2.18 |
| Waha Hub | 2.24 |
| Canadian/Rockies Region
| Nova/Aeco (C$/gig) | 3.02 |
| Dawn Hub/Union | 2.39 |
| Northwest Stanfield | 2.17 |
| Wyoming Pool | 2.12 |
| Opal/Kern River | 2.12 |
| PGT-Malin | 2.26 |
| Sumas | 2.17 |
Flow Date 1/17
-------------------------------------------------------------

NATURAL GAS FUTURES
Henry Hub
12 Month Strip ?2.6170 +0.0709 ? ? ?
18 Month Strip ?2.7174 +0.0608? ?
| Month | High | Low | Close | Change |
| FEB | 2.406 | 2.380 | 2.394 | +0.103 |
| MAR | 2.375 | 2.356 | 2.363 | +0.090 |
| APR | 2.383 | 2.376 | 2.383 | +0.080 |
| MAY | 2.470 | 2.380 | 2.446 | +0.078 |
| JUN | 2.525 | 2.420 | 2.506 | +0.078 |
| JUL | 2.585 | 2.570 | 2.566 | +0.073 |
| AUG | 2.615 | 2.605 | 2.606 | +0.068 |
| SEP | 2.606 | 2.600 | 2.599 | +0.063 |
| OCT | 2.615 | 2.565 | 2.621 | +0.063 |
| NOV | 2.800 | 2.770 | 2.816 | +0.053 |
| DEC | 3.015 | 2.960 | 3.011 | +0.051 |
| JAN | 3.105 | 3.040 | 3.093 | +0.051 |
-------------------------------------------------------------
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Natural Gas Futures Rally on AGA Report

Natural gas futures for February delivery on the NYMEX jumped
$0.103 higher yesterday to $2.394 per MMBtu. The March contract
gained $0.09 to $2.363 per MMBtu. The market began the day up and
pushed higher after a 137 Bcf withdrawal was reported by the AGA in
the afternoon. The storage report was about what was expected, but
was 37 Bcf more than a year ago. However, it barely dented the record
amounts of inventory remain in storage, about 2.529 Tcf, at 77% full
compared to 44% full last year at this time at 1.459 Tcf. The 5-year
average is 2 Tcf. The rally broke through the $2.36 resistance level.
Funds are holding record-high short positions and could cause a major
technical rally if they ever had to cover. But, more likely the
market will head back down as the fundamentals takeover. Support is
seen at $2.36, $2.32 and $2.25 per MMBtu. A cold front expected to
move into eastern states next week and could cause the market to
rally again, but the increase will be difficult to sustain. Natural
gas for next day delivery across the US and Canada was generally flat
to $0.05 higher yesterday. Natural gas for next delivery at the hub
gained $0.03 to $2.39 per MMBtu.
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-------------------------------------------------------------
Today's Power Bulletins
* SEC Approves National Grid ? Niagara Mohawk Merger
* AES NewEnergy Receives License to Sell Electricity in Oregon
* Entergy Nuclear Plants Earn Top Safety Rating from OSHA
* Fuel Cell Investor 2nd Annual Industry Summit to be Held in New
York Marriott
Marquis Hotel at Times Square, March 26 ? 27
* California Attorney General Seeks to Hold Enron in Contempt of
Court for Failing to Turn Over Subpoenaed Documents
* Enron Shares Fall in Pink Sheet Trading.
FERC Chairman Wood to Meet with PJM Interconnection and Midwest ISO
Regarding Letter of Intent to Create Single Market Between Them
* Great River Energy Research Project Could Increase Lignite
Marketability.
Western Spot Power Prices Rise Amid Curtailed Generation
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PG&E Ads Blast California PUC Lawsuit


PG&E has bought full-page advertisements in newspapers throughout
California blasting a giant state fraud lawsuit against the bankrupt
utility in a bid to topple the company's reorganization plan. The ads
reprinted a recent letter to the employees of Pacific Gas and
Electric from the chairman and chief executive of the parent company.
He wrote that the lawsuit by the California Attorney General
contained false and unwarranted accusations. The lawsuit charges that
PG&E drained cash from the utility during the California power
emergency to fund new businesses and drove the company into
bankruptcy and seeks damages of $600 million to $4 billion. The
attorney general and the PUC are working to derail the utility's
reorganization plan because they don't want to lose regulatory
jurisdiction over the company, the ad said. The plan would shift the
utility's power generation and energy transmission systems to new
companies formed by PG&E and beyond state jurisdiction.
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-------------------------------------------------------------
AGA Natural Gas Storage Report

Week Prev
Ending Prev Prev Year
| Region | 1/11/02 | Week | Diff | % Full | Year | % Full|
| Prod | 733 | 777 | -44 | 78% | 343 | 35% |
| East | 1396 | 1482 | -86 | 76% | 880 | 46% |
| West | 400 | 407 | -7 | 79% | 236 | 47% |

| Total | 2529 | 2666 |-137 | 77% | 1459 | 44% |
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Calpine Revises 2001 and 2002 Earnings Estimates

Calpine has lowered its earnings estimates for 2001 and 2002. It
now expects profits of $1.95 per share for 2001 compared to estimates
of $2.00 per share. For 2002, it expects earnings of $1.70 per share
versus estimates of $2.20 per share. Even though Calpine lowered its
estimate for 2001, it will see its profits rise by 63% above 2000
earnings. Calpine also revised its capital spending budget downward
by $2 billion saying it will complete 27 power projects, accounting
for 15,200 MW, which are currently being built. Another 34 projects
in the advanced development stage will be on hold until demand for
power increases. It is also negotiating with major equipment
suppliers to adjust payment schedules and revise delivery timing in
line with its new construction schedule. Calpine, Mirant and other
power generators have delayed or canceled billions of dollars in
projects in an attempt to bolster credit ratings and reassure
investors. Last month, Moody's lowered Calpine's credit rating to
junk and said it remained on review for further possible downgrades.
Calpine has raised almost $5 billion in the last 3 months, including
a $2.6 billion bond sale. Its current generating capacity is 11,100
MW, but was scheduled to have up to 70,000 MW by the end of 2005. It
now expects to have 26,300 MW by the end of 2003. Plants with a
combined capacity of 82,000 MW have been canceled or postponed.
Plants under construction with another 200,000 MW of capacity are on
the auction block.
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-------------------------------------------------------------
PHYSICAL POWER PRICES
| | High | Low | Average |
| | $/MWh | $/MWh | $/MWh |
| Cinergy | 20.00 | 19.35 | 19.75 |
| ECAR | 21.50 | 18.50 | 20.25 |
| ERCOT | 21.00 | 17.55 | 19.75 |
| Entergy | 23.00 | 20.00 | 21.40 |
| TVA | 26.35 | 23.75 | 25.90 |
| ComEd | 21.75 | 19.50 | 20.45 |
| Nepool | 30.50 | 30.25 | 30.40 |
| PJM West | 23.40 | 23.20 | 23.30 |
| Main | 21.75 | 19.05 | 20.25 |
| MAPP | 23.00 | 20.00 | 20.90 |
| Palo Verde | 30.50 | 28.00 | 28.65 |
| Mid C | 22.75 | 20.50 | 21.35 |
| COB | 25.50 | 23.75 | 24.30 |
| 4 Corners | 27.00 | 26.00 | 26.50 |
| Mead | 30.00 | 28.00 | 29.10 |
| NP 15 | 30.00 | 27.00 | 28.25 |
| SP 15 | 30.50 | 27.25 | 28.65 |
Power Delivered 1/17
-------------------------------------------------------------
FERC to Create Power Market Oversight Unit

The FERC plans to create a new market oversight unit to prevent
manipulation of wholesale electricity prices and supplies. The new
Office of Market Oversight and Investigations is designed to protect
customers through vigilant oversight of the nation's energy market,
according to the FERC. It plans to have the office operating with a
staff of over 50 by this Spring. The FERC currently has an office of
Markets Tariffs and Rates, which monitors markets in a broad way.
But, the new office will be FERC's first attempt of defining and
curbing market power, either through refund orders or courts.
-------------------------------------------------------------
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 NYMEX Volume
02FEB 32,364
02MAR 13,993
02APR 5,770
02MAY 1,972
02JUN 1,601
02JLY 3,826
02AUG 2,476
02SEP 609
02OCT 4,332
02NOV 1,411
02DEC 1,859
03JAN 953
03FEB 519
03MAR 2,032
03APR 482
03MAY 0
03JUN 69
03JLY 16
03AUG 1,532
03SEP 2
03OCT 592
03NOV 30
03DEC 181
04JAN 0
-------------------------------------------------------------
Todays Gas Bulletins
* Hart Publications Launches Pipeline and Gas Technology Magazine
* Dynegy Promotes Matt Schatzman to President and CEO of Energy
Convergence
Business
* California Meteorologist Wins $50,000 in Aquila/AMS Forecast
Competition
* David Duncan, Fired Former Andersen Auditor Who Shredded Enron
Documents, Now Cooperating with House Energy and Commerce Committee
Investigation
* Southern Natural Files $200 Million Debt Offer with SEC
* Phillips Optimistic About Alaska Natural Gas Pipeline; Favors 2100-
Mile Southern Route to Alberta, Partly Along Existing Trans-Alaska
Oil Pipeline and Partly Alaska Highway Route
* GAO Trying to Gauge Congressional Support for Court Action Against
White House Over Refusal to Give Details of How Energy Policy was
Formulated
------------------------------------------------------------
Ziff Energy Group presents
Gas Storage 2002
Redefining the Fundamentals:
Is Gas Still in the Storage Game?
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-------------------------------------------------------------
JP Morgan Posts 4th Quarter Loss

JP Morgan Chase posted its first quarterly loss in 5 years after
it wrote off loans to Argentina and Enron. The bank lost $332
million, or $0.18 per share, compared with earnings of $0.34 per
share, or $708 million, in the 4th quarter of 2000. The banks
decision to lend to Enron, Argentina and others that defaulted kept
it from profiting from the lowest interest rates in 40 years.
Competitors that took advantage of the low rates are reporting
increased earnings. JP Morgan took a write-off of $456 million for
trading losses and loans to Enron and still has exposure of $2.06
billion of potential losses. The lender had a complex relationship
with Enron as it traded with the company, advised it and loaned it
money. JP Morgan will attempt to recover its Enron loans, some of
which were not backed by collateral, in bankruptcy court. The bank is
also suing insurance companies for $965 million for insured oil and
natural gas contracts. In addition, JP Morgan took a charge of $351
million for loans to Argentina, which devalued its currency and
defaulted on its bonds. It is one of 4 US lenders with large
exposures in the country. The bank said it lost $385 million in its
private equity business, and also allowed $510 million to cover
further possible loan defaults in response to deteriorating market
conditions.
-------------------------------------------------------------
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-------------------------------------------------------------
Marathon Announces 2 Deepwater Gulf of Mexico Dry Holes

Marathon Oil did not encounter hydrocarbons at the company's
Paris Carver and Flathead exploratory wells in the deepwater Gulf of
Mexico. The Paris Carver and Flathead wells are located in Green
Canyon Block 601 and Walker Ridge Block 30, respectively. Paris
Carver was drilled to a total depth of 24,120 feet in 4,572 feet of
water, and Flathead was drilled to a total depth of 28,043 feet in
6,556 feet of water. Marathon has plugged and abandoned the Paris
Carver well. The Flathead well has been temporarily abandoned and,
after completing additional technical studies, Marathon is
considering reentering and sidetracking options. Marathon was
operator of the Paris Carver well and holds a 50% interest in Blocks
601 and 602; and also operated the Flathead well, and holds a 100%
interest in Block 30.
-------------------------------------------------------------
POWER FUTURES ?
| Month | COB | Change | PV | Change |
| FEB | 22.00 | +0.00 | 23.50 | +0.00 |
| MAR | 20.50 | +0.00 | 23.00 | +0.00 |
| APR | 20.90 | +0.00 | 24.25 | +0.00 |
| MAY | 19.00 | +0.00 | 25.25 | +0.00 |
| JUN | 20.50 | +0.00 | 30.00 | +0.00 |
| JUL | 30.50 | +0.00 | 40.00 | +0.00 |
| AUG | 40.50 | +0.00 | 44.25 | +0.00 |
| SEP | 35.00 | +0.00 | 35.00 | +0.00 |
| OCT | 27.00 | +0.00 | 27.50 | +0.00 |
| NOV | 26.50 | +0.00 | 27.00 | +0.00 |
| DEC | 27.50 | +0.00 | 27.50 | +0.00 |
| JAN | 27.00 | +0.00 | 27.00 | +0.00 |
| Month | Entergy | Change | Cinergy | Change |
| FEB | 20.15 | +0.65 | 21.20 | +0.65 |
| MAR | 20.70 | +0.35 | 22.10 | +0.10 |
| APR | 20.70 | +0.35 | 22.10 | +0.10 |
| MAY | 23.75 | +0.25 | 25.35 | +0.15 |
| JUN | 29.00 | +0.00 | 31.65 | +0.00 |
| JUL | 38.00 | +0.25 | 41.70 | +0.00 |
| AUG | 28.00 | +0.00 | 41.70 | +0.00 |
| SEP | 22.25 | +0.00 | 23.15 | +0.25 |
| OCT | 22.25 | +0.25 | 23.25 | +0.25 |
| NOV | 22.25 | +0.25 | 23.00 | +0.00 |
| DEC | 22.25 | +0.25 | 23.00 | +0.00 |
| JAN | 24.75 | +0.25 | 26.00 | +0.00 |
-------------------------------------------------------------
Power Futures
| Month | PJM | Change |
| FEB | 24.75 | +0.10 |
| MAR | 24.90 | +0.15 |
| APR | 24.90 | +0.15 |
| MAY | 28.25 | +0.05 |
| JUN | 35.15 | -0.10 |
| JUL | 48.75 | -0.10 |
| AUG | 48.75 | -0.10 |
| SEP | 25.55 | +0.05 |
| OCT | 25.25 | +0.00 |
| NOV | 25.25 | +0.00 |
| DEC | 25.25 | +0.00 |
| JAN | 29.00 | +0.30 |
-------------------------------------------------------------
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
----------------------------------------------------------------------
----------------------------------------------------
Dominion Resources Expects 4th Quarter Costs


Dominion Resources had 4th quarter expenses of $348 million for
losses from dealings with Enron and for a restructuring. The
company's 2001 earnings, excluding some items, met or exceeded
forecasts of $4.15 per share. The expenses include $97 million
related to Enron, a $183 million write-off of Dominion Capital assets
and $68 million from a restructuring. The Enron costs involve $6
million for past sales to the energy trader and $91 million for the
decline in value of forward natural gas contracts with Enron.
Dominion expects profit this year of $4.90 - $4.95 per share.
Earnings after 2002 should rise at an average annual rate of 10%,
Dominion says. Last November, Dominion cut its senior-management
team by 19 officers, or 25%. Dominion has hedged more than 60% of its
2002 natural gas production and 40% of its 2003 natural gas volume at
prices above current market prices.
-------------------------------------------------------------
UBS to Restart EnronOnline

Natural gas traders who did large volumes of business with Enron
are taking a wait-and-see approach toward dealing with the new market
player expected to emerge from the recent deal with Swiss bank, UBS.
Some have their doubts about UBS' potential impact on the market. The
deal calls for UBS to restart the trading business, including
EnronOnline, with the help of 830 former Enron workers. However, even
if the deal does get the court's approval, there is still some
question among marketers and traders as to whether a revitalized
trading operation could recapture the dominant market share Enron
held prior to bankruptcy.
-------------------------------------------------------------

????????????????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
-------------------------------------------------------------
President Urges Senate to Act on National Energy Plan

In an address in New Orleans, President Bush said that it was a
matter of national security for the US to have a National Energy
Package. The president urged the Senate, where energy legislation is
currently stalled, to take immediate action to pass a National Energy
Plan. The president's remarks come prior to Congress reconvening next
week after the holiday recess. The White House, labor and business
leaders support the development of resources in ANWR to increase
energy independence, national security and create over 755,000 jobs.
Opening the ANWR could double the current domestic supply of oil and
make the US far less reliant on foreign sources for its energy needs.
The US Geological Survey reports that the 1.5 million-acre tract
holds upwards of 16 billion barrels of recoverable oil, which is the
energy equivalent of 17.7 billion barrels of gasoline, enough to
supply the total US gasoline demand for nearly 6 years. Arctic Power,
an Alaskan-based non-profit organization that supports the opening of
ANWR says that Congress has debated ANWR for over 14 years and now it
is the responsibility of the Senate to face up to the realities of
the present situation. The 2,000 acres of the ANWR designated for
exploration could replace Iraqi imports for the next 70 years.
-------------------------------------------------------------
FINANCIAL SUMMARY
The TSE 300 dropped 59.88 points to 7584.02
The CRB Index added 1.32 points to 194.32
The US Dollar increased 0.16 points to 117.56
The Dow declined 211.46 points to 9712.27
The S&P 500 lost 18.62 points to 1127.57
The Nasdaq was down 56.47 points to 1944.44
February NYMEX Crude Oil fell 0.04 to 18.86
Canadian-US Exchange rose 0.0050 to 1.5947
-------------------------------------------------------------
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-------------------------------------------------------------
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
-------------------------------------------------------------
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http://www.progas.net/wip
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http://www.energyseminars.com
http://www.desert-crossing.com
http://www.epis.com
http://www.rwbeck.com
http://www.NewEnergyAssoc.com




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