Carries

Over-reliance on natural gas as the fuel for new electricgenerating plants nationally carries with it an inherent risk toreliability and the threat of exacerbating already volatilewholesale markets, according to three industry executives whoaddressed a meeting of state regulatory commissioners in San Diegolast week.

Pacific Gas & Electric issued a low-inventory Stage 1 OFOfor today. It carries penalties of $1/dth for negative dailyimbalances exceeding a relatively stringent 2% tolerance range.

For the second week in a row, Pacific Gas & Electricdeclared an unusual weekday low-inventory OFO. The order, effectivetoday, carries $1/dth penalties for negative imbalances exceeding10%.

Pacific Gas & Electric issued a systemwide high-inventoryOFO effective today. The order carries penalties of $1/Dth forpositive imbalances exceeding a tolerance of 11%. The utilityprojected that high linepack (200 MMcf greater than target) wouldlast through Sunday.