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Enerfax Daily
NORTH AMERICA'S FREE POWER AND GAS INFORMATION SOURCE
              Tuesday, January 8, 2002 No. 900
Visit: http://www.enerfax.com/ or for Oil Prices & News
http://www.enerfaxgold.com/
PHYSICAL NATURAL GAS PRICES
Gulf/Eastern Region
| Agua Dulce              | 2.18  |
| ANR SE                  | 2.26  |
| Carthage TG             | 2.24  |
| Chicago Citygate        | 2.22  |
| Columbia Gulf Onshore   | 2.29  |
| Dominion South Point    | 2.45  |
| Henry Hub               | 2.30  |
| Houston Ship Channel    | 2.30  |
| Katy Hub                | 2.24  |
| NGPL LA Pool            | 2.21  |
| NGPL - Midcontinent     | 2.09  |
| NGPL STX                | 2.17  |
| NGPL TX/OK              | 2.18  |
| NNG Demarc.             | 2.12  |
| Niagara                 | 2.42  |
| Sonat Tier 1            | 2.28  |
| TCO IPP Pool            | 2.40  |
| Tetco ELa               | 2.30  |
| Tetco M-3               | 2.91  |
| Tetco STX               | 2.25  |
| TGP Zone 0              | 2.22  |
| TGP Zone 1 (500 Leg)    | 2.25  |
| TGT Zone SL             | 2.28  |
| New York Citygate       | 3.04  |
| Transco Station 65      | 2.40  |
| Transco Zone 6 (NY)     | 3.05  |
| Trunk ELa               | 2.24  |
| Western Region
| California Border       | 2.13  |
| El Paso Keystone        | 2.03  |
| El Paso San Juan-Blanco | 1.99  |
| Waha Hub                | 2.11  |
| Canadian/Rockies Region
| Nova/Aeco (C$/gig)      | 2.75  |
| Dawn Hub/Union          | 2.29  |
| Northwest Stanfield     | 1.87  |
| Wyoming Pool            | 1.85  |
| Opal/Kern River         | 1.87  |
| PGT-Malin               | 1.98  |
| Sumas                   | 1.86  |
            Flow Date 1/8
-------------------------------------------------------------
NATURAL GAS FUTURES
Henry Hub
12 Month Strip  2.5591 -0.0070
18 Month Strip  2.7047 -0.0060
| Month | High  |  Low  | Close | Change |
| FEB   | 2.350 | 2.210 | 2.272 | -0.003 |
| MAR   | 2.325 | 2.210 | 2.261 | -0.004 |
| APR   | 2.345 | 2.240 | 2.281 | -0.007 |
| MAY   | 2.405 | 2.300 | 2.345 | -0.007 |
| JUN   | 2.465 | 2.380 | 2.413 | -0.008 |
| JUL   | 2.540 | 2.450 | 2.476 | -0.007 |
| AUG   | 2.580 | 2.500 | 2.526 | -0.010 |
| SEP   | 2.590 | 2.515 | 2.541 | -0.010 |
| OCT   | 2.625 | 2.560 | 2.581 | -0.007 |
| NOV   | 2.855 | 2.790 | 2.811 | -0.007 |
| DEC   | 3.080 | 3.010 | 3.041 | -0.007 |
| JAN   | 3.190 | 3.140 | 3.161 | -0.007 |
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Natural Gas Futures Slip Slightly Lower



    Natural gas Futures for February delivery on the NYMEX settled $0.003
lower yesterday at $2.272 per MMBtu. The March contract lost $0.004 to
$2.261 per MMBtu. With short-covering from locals and funds in the front
and trade buying in the back months, the market reached $2.35 by
mid-afternoon but then quickly sold off late in the session. The technical
buying on what was being termed an oversold market came in late morning as
locals and funds tried to cover positions, then punched in buy-stops into
the mid-$2.30 before corporate trading houses took profits and sold down
the contract late. It turned out to be a long day's journey to just about
nowhere. Look for the market drop lower early today as yesterday's late
sell-off continues. However, the AGA is expected to report higher
withdrawal tomorrow afternoon than in recent weeks. Early predictions are
for a withdrawal of about  150 - 160 Bcf, compared to 167 Bcf a year ago.
The 5-year average for the week is 118 Bcf. More short-covering later
today could push the market as high as $2.40-$2.50, but it is more likely
to wait for the storage report for direction. Natural gas for next day
delivery across the US and Canada was generally down $0.05 - $0.10
yesterday. Natural gas for next day delivery at the Henry hub lost $0.06
to $2.30 per MMBtu.
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Today's Power Bulletins
 * FERC ALJ to Hold Pre-Hearing Conference on California's Demand for $9
Billion in Refunds for Alleged Power Overcharges Last Year
 * EPCOR to Proceed with Genesee Phase 3 Project - Generator First in
Canada to Use Supercritical Technology
 * Attorneys General of 9 Northeast States Host News Conference Today
Regarding.
Emissions Policy to Warn Administration They Will Consider Legal Action if
Enforcement of Power Plants and Refineries Relaxed
 * El Paso Linden, NJ Power Plant to Start Operations of Expanded to 761
MW Next Week
 * Procter & Gamble Selects AES NewEnergy as Electricity Supplier in
Southern Ohio
 * MidAmerican Announces Council Bluffs as Site of 900 MW Coal Plant
 * Oregon's Largest Electric Utilities Launch New Choices through State
Restructuring Plan
-------------------------------------------------------------
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* Market statistics and characteristics that will impact your business
* Graphs, tables and pictures give a snapshot for a quick grasp of the
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* Over 130 color pages of clear, concise information for only $995
For more information, visit www.skippingstone.com and link to the Texas
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-------------------------------------------------------------
FPL Begins Operation of New Wind Power Projects

    FPL Energy has began full operation of 2 large wind power plants, one
in Texas and the other in Washington.  FPL says the 278 MW King Mountain
Clean Energy Center near Odessa, and the 263 MW Stateline Clean Energy
Center near Walla Walla began operations last month. The two plants join 3
other wind power facilities FPL started in last year: 160 MW at Woodward
Mountain, also near Odessa, 112 MW in Gray County, Kansas, and 30 MW in
Monfort, Wisconsin. FPL Energy operates 1,830 MW and owns 1,439 MW of wind
power facilities in 8 states. FPL will continue to look for appropriate
sites for wind power development, but has expressed concern about the
future of the renewable energy source following the December 2001
expiration of the federal wind energy production tax credit.
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--------------------------------------------------------------
Natural Gas NYMEX Volume
02FEB   30,293
02MAR   15,281
02APR    9,124
02MAY    9,182
02JUN    4,304
02JLY    3,534
02AUG    2,466
02SEP    1,460
02OCT    1,667
02NOV    1,639
02DEC    1,687
03JAN    1,699
03FEB      632
03MAR    1,267
03APR      459
03MAY       25
03JUN      249
03JLY       13
03AUG       11
03SEP       13
03OCT       11
03NOV      280
03DEC       39
04JAN       73
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-------------------------------------------------------------
PHYSICAL POWER PRICES
|            | High  |  Low  | Average |
|            | $/MWh | $/MWh |  $/MWh  |
| Cinergy    | 23.00 | 18.00 |  21.55  |
| ECAR       | 25.50 | 18.00 |  22.85  |
| ERCOT      | 18.50 | 18.25 |  18.35  |
| Entergy    | 21.00 | 18.50 |  19.05  |
| TVA        | 26.30 | 24.00 |  25.65  |
| ComEd      | 21.00 | 20.00 |  20.50  |
| Nepool     | 33.75 | 33.50 |  33.70  |
| PJM West   | 28.80 | 25.10 |  25.80  |
| Main       | 22.00 | 19.00 |  20.55  |
| MAPP       | 23.00 | 19.00 |  20.65  |
| Palo Verde | 22.00 | 18.50 |  20.70  |
| Mid C      | 18.00 | 16.75 |  17.25  |
| COB        | 20.00 | 19.00 |  19.45  |
| 4 Corners  | 20.50 | 16.00 |  18.25  |
| Mead       | 21.50 | 19.75 |  20.80  |
| NP 15      | 22.50 | 20.00 |  21.30  |
| SP 15      | 22.50 | 20.10 |  21.55  |
             Power Delivered 1/8
-------------------------------------------------------------
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Todays Gas Bulletins
 * Williams Companies' $1 Billion FELINE PACS Rated 'BBB' by Fitch
 * Heating Oil Falls 2.4% on Forecast for Warmer Weather in Northeast
 * Dynegy and Other Enron Creditors Ask Judge to Transfer Bankruptcy to
Houston from New York
 * Federal Judge Ruling Limits Southwest Gas Failed Merger Case; ONEOK
Legal Exposure Reduced Considerably
 * Transatlantic Holdings Expects $39 Million in Enron Exposure
 * UtiliCorp Completes Aquila Short-Form Merger; NYSE Trading of Aquila
Shares Ceases
 * Williams Energy Partners to Release Earnings January 28th
 * Coalbed Methane Water Management Strategies Conference February 4th -
5th in
Durango, Colorado
 * Bids Roll In for Enron's Trading Operations
------------------------------------------------------------
 Ziff Energy Group presents
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-------------------------------------------------------------
PG&E Chromium Lawsuits Could Be Moved to Federal Court

    The judge presiding over Pacific Gas & Electric's bankruptcy will soon
rule on litigation connected to the 1993 case that led to the movie Erin
Brockovich. That case involved 650 people who were paid $333 million by
PG&E to settle claims they drank water containing chromium six, a
potential cause of cancer, near a Hinkley, CA natural gas pipeline station
owned by PG&E. The new claims involve 1,250 people seeking $500 million
for alleged personal injuries that are pending in 15 lawsuits involving
chromium at PG&E's Kettleman, Topock and Hinkley pipeline stations. PG&E
has said its potential liability is $160 million. Chromium six was used at
the pipeline stations in the 1950s and 1960s to prevent the pumps' cooling
systems from rusting then dumped in unlined ponds near the stations.
Attorneys for the plaintiffs say the chromium seeped into underground
water supplies and caused a number of illnesses, including cancer.
Although PG&E has said it used the chemical, it denies that chromium has
caused the illnesses. PG&E attorneys have said that bankruptcy law
mandates that personal injury and wrongful death claims be moved to a US
district court to ensure that the claims are handled as quickly and fairly
as possible. Plaintiffs attorneys contend that the suits were filed long
before the utility filed for bankruptcy and that moving them now to a
federal court would prolong the cases.
-------------------------------------------------------------
POWER FUTURES
| Month |   COB   | Change |   PV    | Change  |
| FEB   |  24.75  | +0.00  |  24.75  |  +0.00  |
| MAR   |  22.00  | +0.00  |  22.00  |  +0.00  |
| APR   |  21.25  | +0.00  |  21.25  |  +0.00  |
| MAY   |  23.20  | +0.00  |  23.30  |  +0.00  |
| JUN   |  22.00  | +0.00  |  22.00  |  +0.00  |
| JUL   |  34.75  | +0.00  |  34.75  |  +0.00  |
| AUG   |  44.00  | +0.00  |  44.00  |  +0.00  |
| SEP   |  39.75  | +0.00  |  39.75  |  +0.00  |
| OCT   |  30.75  | +0.00  |  30.75  |  +0.00  |
| NOV   |  33.00  | +0.00  |  30.00  |  +0.00  |
| DEC   |  35.00  | +0.00  |  30.00  |  +0.00  |
| JAN   |  33.00  | +0.00  |  30.75  |  +0.00  |
| Month | Entergy | Change | Cinergy | Change  |
| FEB   |  21.70  | +0.00  |  23.60  |  +0.00  |
| MAR   |  21.75  | +0.00  |  23.70  |  +0.00  |
| APR   |  21.75  | +0.00  |  23.70  |  +0.00  |
| MAY   |  24.50  | +0.00  |  26.75  |  +0.00  |
| JUN   |  31.75  | +0.00  |  35.50  |  +0.00  |
| JUL   |  41.00  | +0.00  |  46.00  |  +0.00  |
| AUG   |  41.00  | +0.00  |  46.00  |  +0.00  |
| SEP   |  22.50  | +0.00  |  24.75  |  +0.00  |
| OCT   |  22.75  | +0.00  |  24.75  |  +0.00  |
| NOV   |  22.75  | +0.00  |  24.75  |  +0.00  |
| DEC   |  22.75  | +0.00  |  24.75  |  +0.00  |
| JAN   |  26.00  | +0.00  |  27.00  |  +0.00  |
-------------------------------------------------------------
Power Futures
| Month |  PJM  | Change |
| FEB   | 27.55 | +0.00  |
| MAR   | 26.10 | +0.00  |
| APR   | 26.10 | +0.00  |
| MAY   | 29.50 | +0.00  |
| JUN   | 38.25 | +0.00  |
| JUL   | 52.50 | +0.00  |
| AUG   | 52.50 | +0.00  |
| SEP   | 26.50 | +0.00  |
| OCT   | 25.50 | +0.00  |
| NOV   | 25.50 | +0.00  |
| DEC   | 25.50 | +0.00  |
| JAN   | 30.00 | +0.00  |
-------------------------------------------------------------
Mackenzie Delta Natural Gas Project Files for Approval

   A consortium of major oil companies have moved closer to developing
almost 6 Tcf of natural gas in the Mackenzie Delta region on the coast of
the Beaufort Sea. The group has begun the lengthy process of applying for
regulatory approval, which could take up to 4 years. Led by Imperial Oil,
the group consists of Conoco, Shell Canada, Exxon Mobil and now includes a
company controlled by Northwest Territories native people. The partners,
known as the Mackenzie Valley Producers Group, could spend up to C$250
million before they decide whether to proceed with the project. The
natural gas reserves would be produced from Imperial's 3 Tcf Taglu field,
the 1.8 Tcf Parsons Lake field, owned by Conoco and Exxon Mobil, and
Shell's 1 Tcf Niglintgak field. The project would include a pipeline to
carry up to 1 Bcf per day of natural gas to Alberta along the Mackenzie
River valley at a estimated cost of C$3 billion. The natural gas would
then be transported to Canada and the US. Last year, the group signed an
agreement with Northwest Territories native leaders that would give the
region's people a 33% share in the pipeline and provide other economic
benefits. Even if the Mackenzie Delta project did not start pumping for 5
or 6 years, it likely will still be ahead of the Alaskan project, where
BP, Exxon Mobil and Phillips are planning development of their reserves.
-------------------------------------------------------------
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
--------------------------------------------------------------------------------------------------------------------------

Platts Says Natural Gas Prices Climb 12.6% in January

     Average monthly natural gas spot prices for January rose 12.6 % from
December, to $2.51 per MMBtu, but are 75% below the average reached in
January 2001, according to Platts. In a survey by Inside FERC's Gas Market
Report, the average price of natural gas delivered to the premium New York
and New Jersey markets for January was $4.92 per MMBtu compared with $3.12
per MMBtu in December and $19.33 per MMBtu last January. In Southern
California, the monthly average reached a high of $16.39 per MMBtu in
January 2001, the average monthly spot price for January 2002 climbed to
$2.62 per MMBtu, up 15.4% from $2.27 per MMBtu in December. The January
average is 84% below the January 2001 level. Monthly spot prices for
January climbed higher because weather was cold across most of the nation
at the close of December when most of the January deal making was
happening and because forecasts for the first part of January were for
more of the same. On January 4th, the average price for futures contracts
for the coming 12 months was $2.569 per MMBtu, down 9.25% from the $2.831
average on December 4th and 51% from the $5.241 average on April 4, 2001.
-------------------------------------------------------------
                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
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-------------------------------------------------------------
Dynedy Says FERC's New Market Power Proposal Too Risky

    All wholesale power transactions would be vulnerable to default if the
FERC adopts a strict new test for granting wholesale trading rights to
utilities, according to Dynegy.  Last Novermber, the FERC introduced a new
standard for sizing up market power for utilities big enough to influence
energy prices in their areas. The plan has raised a storm of protest from
many utilities. The proposed new market power test is based on the peak
power demand in any given area. If a company controls generation in any
area greater than its peak demand, FERC would require it to base rates on
per-unit production costs, not market-based rates. The previous
market-power test was any firm controlling more than 20% of supplies could
be subject to penalties. The new rules would call to question the finality
of all power market transactions and invite buyers to walk away from
purchase obligations, Dynegy says. About $100 billion in merchant
generation investment could be shelved if the FERC proceeds with a
proposed new rule, Dynegy warned saying all generation investment would be
exposed to a regulatory risk that did not exist before. In December, the
FERC delayed implementation of the new rules for several months until a
technical conference to give companies a chance to offer suggestions.
Dynegy says id the proposed new rules could also stunt the development of
renewable resources like wind, hydro and solar supplies by requiring them
to sell their power at no incremental cost. Entergy has also complained
that the FERC's sweeping changes are not justified by current laws. The
FERC is working to design 4 RTOs nationwide with built-in
market-monitoring capabilities which would negate the need for the new
market power rules. RTOs with approved monitoring systems will be exempt
from the new agency order.
-------------------------------------------------------------
ALL BAD NEWS SEEN IN THE MARKET According to a top industry analyst
traders are going to have to bide their time if they expect natural gas
prices to get much help from recovering industrial demand. Last week the
NAPM (National Association of Purchasing Managers) issued a positive
report concerning industrial activity, but natural gas traders showed
little interest. "Industrial demand could be improving slowly, but what is
going on out there is overshadowed this time of year by weather
developments," says Jim Ritterbusch of Ritterbusch and Associates. "There
should be some indication of growing industrial demand. The stock market
is a leading indicator of industrial activity and those markets are
looking strong, and some of the other indices are looking OK, but for the
time being industrial activity is being buried by other overwhelmingly
bearish factors. The forecasts for industrial activity and what goes on in
the natural gas market seem to be a bit tenuous at best. for the next
couple of months the focus is going to be on the weather and once we get
to tne end of February, then the industry will focus on industrial
demand." "I do think that all the bad news may be presently factored into
the market. Even though there were new lows made early this week, I think
any low prices much below those levels are going to be difficult to
sustain," he said. GET YOUR FIVE WEEK FREE TRIAL TO GASTRADER NEWSLETTER.
CHECK IT OUT AT GASTRADER.NET
--------------------------------------------------------------
FINANCIAL SUMMARY
The TSE 300 added 37.01 points to 7870.25
The CRB Index gained 1.07 points to 194.89
The US Dollar increased 0.16 points to 116.33
The Dow declined 62.69 points to 10197.05
The S&P 500 dropped 7.62 points to 1164.89
The Nasdaq was down 22.28 points to 2037.10
February NYMEX Crude Oil fell 0.14 to 21.48
Canadian-US Exchange rose 0.0004 to 1.5979
-------------------------------------------------------------
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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.e-acumen.com
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