What Customers Want to Know for Winter

Friday, November 04, 2011

It has been a challenging summer and autumn. As was reported in October, PG&E's California Gas Transmission has been keenly focused on quickly and safely restoring as much pipeline capacity and pipeline inventory as possible. CGT understands that customers want to know our best, most realistic expectations for the upcoming winter.

- We have now posted the best information currently available for expected pipeline maintenance and resulting path capacities through the end of the year. The Baja path capacity is anticipated to increase to approximately 920 MMcf/day around the first of the new year. In 2012, we commit to providing updated maintenance information for the following month, no later than the start of bid week.

- Northern California's current storage inventory levels are higher than they have been in the last three years at this same point in time. We at CGT currently have no concern or expectation that we will have any significant limitation in regular withdrawal capabilities at our storage facilities this winter.

- With ongoing efforts to restore pressure on cleared pipe segments and restore related pipeline inventory, it is our expectation that by December 1st, the available inventory swing will increase from 200 MMcf to 450 MMcf. This increase in total available system inventory will position CGT to better absorb fluctuations in supply and demand. This will eliminate the necessity of calling High/Low Inventory OFOs. However, we expect to continue to call one-sided OFOs on an ongoing basis as necessary.

With this positive news, please continue to be aware that PG&E's safety validation process and ongoing system integrity analysis work will continue through 2012 and most of 2013. The impact on system inventory and path capacities is always changing. We reconfirm our pledge to bring you the best, most up-to-date information in as timely a manner as we can. Thank you for your ongoing efforts to work in tandem with us.

Questions? Please contact your CGT Account Services or Sales Representative.