The State of California’s Department of General Services isseeking qualified suppliers to enter a one-year term deal for about15 million MMBtu to be delivered to the Pacific Gas & Electricand Southern California Gas service territories between July 1,2000 and June 30, 2001.

Pricing will be based on the monthly Malin, PG&E citygateand Southern California border indexes published in NGI’s WeeklyGas Price Index, along with combinations of ceiling and floorlevels. There will be separate full-requirements contracts for eachutility’s service area. About 11 million MMbtu will be requiredunder the PG&E contract while the SoCal Gas contract requiresabout 4 million MMbtu. “The PG&E contract includes arrangementsto allow DGS to make full use of its Redwood Path capacityresources,” the department said.

In the PG&E contract, the supplier must providetransportation from Malin to the citygate for all necessary gas inexcess of the Redwood Path capacity made available by DGS. Thecontract also will require the supplier to provide smaller amountsof gas for DGS’s Core Aggregation Program. Currently the programserves two customers using about 30,000 MMBtu per year. Thedepartment plans to continue developing the program but said it hasagreed to limit the volume to a maximum of 300,000 MMbtu per year.

The supplier will be chosen in a two-part process.Qualifications packages are due by 4 p.m. PDT May 4; qualifierswill be announced a week later. The deadline for faxed bids is 8:30a.m. May 17, with the winning bidder to be announced two hourslater.

Call Marty Sengo, manager, energy resources for the DGS NaturalGas Services program, at (916) 323-6295 for more information. Healso can be e-mailed at this address: marty.sengo@dgs.ca.gov.

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