California only produces approximately 13 to 16 percent of the natural gas that it consumes for all purposes. The rest of California's natural gas must be imported. Electric generation uses about a third of the total natural gas consumed in California. Natural gas demand for electricity generation in December 2000 was more than double the historical level for that time of year. Predictions Natural gas prices are likely to settle in at present levels.
Any major relief is probably two to three years away.
May and June now appear to be the months where the electric supply shortage seems to be most critical. An economic downturn could reduce demand, reducing electric and natural gas prices, and mitigating supply issues. The 38 districts participating in the League's highly successful electric purchasing program will benefit from an even larger discount because of recent PUC rate increases. On April 12 th League Executive Director David Viar, Director of Special Services Ray Giles, Director of Legislative Services Bonnie Slosson, and Dan Jenkins, the League's energy consultant, met with Marty Sunde, the Vice Chairman of Enron Energy Services, and other Enron officials. Mr. Sunde reiterated Enron's commitment to honoring all commitments to community college districts under the present agreement.