Nervous time returned to Pacific Gas & Electric’s naturalgas operations Tuesday, as it was trying desperately to get morethan two dozen mostly reluctant suppliers to sign contractextensions of up to 90 days using a new state regulatory-backedsecuritization of the utility’s retail gas revenues to assurefuture payments to the suppliers.

With the Tuesday midnight expiration of the emergency federalorder mandating suppliers to sell in California looming with littlechance of an extension, the PG&E utility was frankly worriedand sweating bullets, according to one spokesperson, as to whetherit would have sufficient supplies later this month.

“I have no idea what the impact of the emergency orderexpiration will be,” said Staci Homrig, who confirmed that one ofthe company’s major suppliers, BP Amoco, has stepped up deliveriesto the company, but how much and under what terms she could notsay. “We have had a lot of positive reaction to the newsecuritization contract provisions, but no signed agreement (as of2 p.m. PST Tuesday). We’re hoping to have some later today.” TonyFountain, president, Gas and Power North America for BP, told theWestern Governors’ Conference in Portland, OR last Friday BP hadrecently doubled supplies it was sending to the PG&E utility.

PG&E’s average daily natural gas load in the winter runsabout 1.5 Bcf.

©Copyright 2001 Intelligence Press Inc. All rights reserved. Thepreceding news report may not be republished or redistributed, inwhole or in part, in any form, without prior written consent ofIntelligence Press, Inc.