Curtailments

Responding to regulatory and industry warnings of potentialpower outages this summer, Pacific Gas and Electric Co., SanFrancisco, has begun offering its largest customers payments forvoluntarily curtailing at least 20% of their loads during peaksummer days. The large combination utility covering the northernhalf of California is targeting its 450 largest customers and arelatively few small businesses to obtain up to 500 MW of savingsin a given peak hour.

The Sable Offshore Energy Project has had to shut downproduction twice since starting operations Jan. 1. The firstincident occurred on Friday, Jan. 7, only a week after gas began toflow, when a sub-sea line started experiencing hydrate problems(essentially ice slug blockage). Then early last week the Sableprocessing plant onshore had to be evacuated because of a gas leakwarning. As of last Friday there was no prognosis on whenproduction would be restarted.

The Sable Offshore Energy Project had to shut down productiontwice since starting operations Jan. 1. The first incident occurredon Friday Jan. 7 only a week after gas began to flow when a subsealine started experiencing hydrate problems (essentially ice slugblockage). Then early last week the Sable processing plant onshorehad to be evacuated because of a gas leak warning. As of lastFriday there was no prognosis on when production would berestarted.