Northern Californians face the threat of losing their natural gas service if financially distressed Pacific Gas and Electric Co. can't convince its gas producers to continue sending it supplies. Cutting gas to small business and residential customers, who depend on gas to cook their meals and heat their homes, would be a desperate, last-ditch step taken only after shutting off industrial users and exhausting supplies in its storage facilities. This forced the utility to draw heavily on its storage reserves to make up the shortfall. The utility said two suppliers, accounting for 10 percent of its daily gas purchases, halted shipments after the expiration at midnight Tuesday of a federal order requiring energy merchants continue selling power and gas to the California market.
Cold weather spells high heating demand and heavy gas usage.
California, on the brink of rolling blackouts for 24 consecutive days, continues to see paper-thin power reserves that could easily trigger more power outages if just one large power plant were to suddenly shut for repairs.