Wednesday dawned with a combination of relief and continuingconcern over gas supplies for the northern half of California inthe wake of the federal emergency order expiring at midnightTuesday. The expiration left Pacific Gas and Electric Co. stillscrambling to get its main suppliers to extend current contractsinto the coming weeks and months. State regulators are expected torule today on a PG&E request for emergency supplies fromSouthern California Gas Co., something the latter utility isstrongly opposing.

In the meantime, El Paso Merchant Energy became the sixthsupplier to continue deliveries under a new arrangement in whichthe utility’s retail gas revenues provide security they will bepaid. Five others signed on to the new arrangement Tuesday. Twosuppliers — J. Aron & Co., the trading arm of New York-basedGoldman Sachs, and Western Gas Resources of Denver — cutsupplies, and in the case of Western, took PG&E’s utility tocourt, alleging the utility failed to pay for its January supplies.The two out-of-state suppliers account for about 10% of PG&E’ssupplies.

PG&E said it normally pays for its gas supplies from theprevious month on the 25th of each month, and it intends to payagain Feb. 25.

In terms of the six suppliers currently committed to continuesupplies, PG&E spokeswoman Staci Homrig said their deals arewelcome, but they alone are not going to solve the impendingshortfall. “We still need to get others on board,” she saidWednesday.

For now, PG&E is covering its shortfall with gas fromstorage, although she would not say how much gas is involved — ineither the shortfall or in the new contract extensions. The utilitycurrently has only about nine days of supply in storage.

“We’re still working out the volumes and will be doing so todayand Thursday,” Homrig said. “If we can’t line up enough gas or getsome (supplies) through SoCalGas, we’re going to have to check someother options.”

Is there any possible relief from the PG&E utility’saffiliated interstate pipeline or trading affiliates?

The PG&E Corp. subsidiaries — both the trading company andpipeline — are helping out, but neither have excess gas suppliesavailable, according to Homrig.

It wasn’t until late Tuesday that PG&E announced that fiveof its gas suppliers agreed to continue selling to the utility aspart of the new CPUC-authorized securitization contracts. The fiveare: BP Energy Company; Texaco Natural Gas Inc.; Dynegy Marketingand Trade (all based in Houston), along with Texaco CanadaPetroleum Inc.; and Dynegy Canada Marketing and Trade.

While expressing optimism, PG&E reiterated that thesesupplies are not enough to avoid “severe shortages in the days andweeks” ahead, so it is continuing to talk with its remaining 20-25suppliers to get them to sign similar contracts.

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