Of course, for the Next Act from Doomzies Be Us we will get "Natural Gas is a crisis". Then global warming will be re-cycled (probably to give alBore something to do for awhile).

-- cpr (buytexas@swbell.net), December 06, 2000.

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***AMAZING! A MODERN DAY PROPHET IS WHAT YOU ARE CPR! ROFL!***

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Natural gas prices more than triple from a year ago

By STEVE EVERLY - The Kansas City Star Date: 12/04/00 22:15

Natural gas prices posted another record Monday, hitting levels that are more than triple the prices of a year ago.

Gas prices were so volatile that on the New York Mercantile Exchange, where the fuel is traded for future delivery, they triggered a one-hour trading halt. Under a previously agreed-to plan, trading is halted when prices rise 75 cents per 1,000 cubic feet of gas.

"I've never seen trading halted like this," said one trader. "It's hard to think that this move is over just yet."

The exchange saw prices for natural gas to be delivered next month rise more than $1 in the morning. They eased slightly later in the day and closed up 76 cents at $7.43 per 1,000 cubic feet.

Wholesale markets offering gas for immediate delivery saw prices rise as well. The average price in the Midwest rose 84 cents, closing at $7.41 per 1,000 cubic feet. A year ago, the wholesale price was $2.17.

The surge in prices was sparked by a report that temperatures in the Midwest and Northeast will be lower than normal in the next few days. The markets were already skittish after a report that the amount of gas in storage was down last week.

The American Gas Association, which compiles the storage report, continues to assert that there is a sufficient supply of gas, even as traders continue to use the figures to help explain the volatility.

"We believe that the gas utilities are in good shape," said a spokeswoman for the American Gas Association in Washington.

Both Kansas Gas Service and Missouri Gas Energy said Monday's spike would not affect customers much immediately. A majority of their gas is purchased in contracts that are priced at the end of the month.

But if the spike in prices continues until then, consumers can expect to pay more to heat their homes. Natural gas is used more to heat homes in the Midwest than any other fuel.

Before Monday's rise in prices, the average natural gas customer could have expected to pay $300 to $350 more this winter. That figure will exceed $400 if prices stay at current levels and there is a normal winter. The average customer is expected to use 90,000 cubic feet of gas this winter, according to the federal Energy Information Administration.

David Sommerer, manager of the gas procurement division at the Missouri Public Service Commission, said regulators were stepping up their review of how utilities bought gas this winter to see whether they had been prudent in getting the best prices possible.

Among the issues that will be reviewed, Sommerer said, is the decision by Missouri Gas Energy not to hedge prices this winter. A hedge is a financial device that can cushion against price spikes.

Missouri Gas decided not to hedge prices after state regulators said it wasn't necessary to approve the hedging. Company officials said the lack of approval made it uncertain that they could recover their hedging costs.

To reach Steve Everly, call (816) 234-4455 or send e-mail to severly@kcstar.com.

Natural gas prices more than triple from a year ago

-- Anonymous, December 06, 2000

Answers

Breaking News: Topping $39, Spot Gas Prices Reach New Highs Wednesday posted 2:40 PM (CST) Dec 6, 2000 Spot prices this morning for Thursday delivery broke the all-time record high of $39 at the Chicago citygate, set in Feb. 2, 1996 trading. A marketing firm reported a deal for $39.75 at the Southern California border. Other deals at the border ranged as low as $30 in tremendously volatile trading. All West Coast prices continued to skyrocket as the region braces for a siege of arctic cold that could severely challenge the western power grid before the weekend.

http://intelligencepress.com/

-- Anonymous, December 06, 2000

Power Grinch could steal California's bright Christmas

December 6, 2000 Web posted at: 1:16 p.m. EST (1816 GMT)

SAN FRANCISCO, California -- California was under a power emergency for a third consecutive day Wednesday, as the prospect of a traditional brightly lit Christmas dimmed a bit.

Power industry officials declared a Stage Two emergency Wednesday morning, as they had on Monday and Tuesday. A Stage Two emergency means the state is down to its last 5 percent of power, and suppliers are allowed to cut power to commercial customers whose contracts allow for interruptions.

"The supply conditions in California have not changed significantly from Tuesday," said Patrick Dorinson, a spokesman for the California Independent System Operator (ISO), which oversees operation of about 75 percent of the state's power grid. He said the situation would probably improve later Wednesday, as emergency supplies are tapped from both in and out of the state.

Officials have asked residents to keep outdoor holiday lights off, keep thermostats set at 68 degrees and turn off computers and lights when not in use. Los Angeles is not hooked into the ISO, and has enough power for all uses, including holiday lighting.

Christmas unplugged

At the state Capitol in Sacramento Tuesday, the power crunch imposed on the Christmas spirit. Gov. Gray Davis lit the state Christmas tree, but pulled the plug five minutes later to save energy. The 56-foot white fir was illuminated again about two and a half hours later, after the peak of the day's electrical demand.

"In some parts of California, people are going without power," Davis said. "I would love to keep the lights on. But it's important that we all pull together to reduce the strain on the grid."

California came close Tuesday to a Stage Three emergency, which would trigger rotating blackouts to prevent the entire grid from failing. There has never been a statewide Stage Three emergency.

The problem has been complicated by the fact that several of California's state's power plants are shut down for maintenance. Demand could increase later this week, as colder weather moves in.

The natural gas connection

Pacific Gas and Electric Co. customers face an average bill of $77 this December, compared with an average of $50 a year ago.

Part of the problem is a decreasing supply of natural gas nationwide, said Claudia Chandler, assistant executive director of the California Energy Commission.

Low natural gas prices over the past few years led to a decline in drilling and production. That is now picking up, but the products of those efforts will not hit the market for up to two years.

The high price of electricity and petroleum also is driving up the cost because much of the natural gas supply goes to the production of electricity.

The Associated Press and Reuters contributed to this report.

http://www.cnn.com/2000/US/12/06/cal.energy.01/index.html

-- Anonymous, December 06, 2000

I've never had natural gas, since I've lived so far out in the sticks. It's hard for me to relate to cost per 1000 cubic feet of gas.

I can deal with BTU's or kilowatt hours. For instance, I know that a gallon of propane contains about 92,000 BTU's of heat.

Anybody able to tell me how many BTU's of heat are contained in a thousand feet of natural gas? Or how many KWH equivalents?

Thanks. BTW, my son in laws mom tells me that her cost per KWH in San Diego just tripled this summer. To 43 cents per KWH!!!! This is just about the same cost as going with solar power, interestingly. Another person I know, who has a vacation house near San Diego, tells me that his power is still down around seven cents per KWH. Strange. Ours here is 5.5 cents. My sister's and my son's, both in southern Washington, are 2.5 and 3.5 cents.

My son in laws mom and her boyfriend have unscrewed all the lightbulbs but one out of the multiple light fixtures. They have only lights that require electricity. No heater, no aircon. No dryer. No stove. No water heater. All those run on natural gas. Yet their power bill is higher than the one I pay for two houses--mine and my other son's next door. And we have all electric, with heat and (when needed) air con.

I had no idea that a power company could get away with this type of rate; I guess they figure "whatever the suckers will bear".

JOJ

-- Anonymous, December 06, 2000