Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (84853)	1/20/2001 5:19:16 PM
From: isopatch	Respond to of 95453

Hi Patron. And thanks. Not trying to dodge the bullet(G) But... If he's out there? Rather Doug Fant take the lead in responding to what really is a pretty complex set of variables that bear on your question. Doug's by far the most qualified guy on the thread as far as gas to power issues are concerned. If he'd get us started with insights from the familiarity he's gained from direct dealings with CA and surrounding states; I'll add whatever I can from my own perspective afterward. Iso

To: patron_anejo_por_favor who wrote (84853)	1/21/2001 11:46:59 PM
From: isopatch	Respond to of 95453

Patron. Whether the utilities try to buy spot NG or futures, cash sellers and futures brokers won't deal with them unless the buyer has the funds or credit to be a credible, "qualified buyer". If your were a major commodities broker, how much margin credit would you extend to a utility widely expected to go BK?! Another way to look at sharp recent declines in NG futures is that large traders may have become concerned that CA utility buyers might not have the funds to take delivery on commitments and contracts already on the books. Such a perception of contracting buying power by large utility consumers of NG and possible ripple effects spreading to neighboring states probably led to the conclusion two weeks ago that there was not sufficient reliable buying power to support recent NG prices of close to $10/mcf. And as a result, traders anticipating a deflationary effect on the commodity began to SELL. If these concerns prove to be unfounded and CA Utilities can somehow obtain the financial wherewithall to once again provide sellers and brokers that they will be paid? IMO that would certainly help NG regain some of its large recent losses. An old fashioned Alberta Clipper might be even better(g). Isopatch