daily california update cpuc votes keep gas flowing special session yesterday california regulators gave pg e utility authority amend gas supply deals keep supplies flowing state past feb 7 current federal doe emergency order expires postponed action another pg e request southern california gas co strongly objected compelled provide emergency supplies pg e utility residential small business customers loretta lynch president california public utilities commission said pg e utility victim victim circumstances victim predatory practices natural gas suppliers demanding payment future supplies front utility failed pay past gas bills electricity crisis sapped credit worthiness cpuc action allows pg e utility offer suppliers option securitization effect lien utility retail customers bills cover full cost wholesale gas prices incentive suppliers extend contracts pg e gas utility operations credit worthiness company dubious next week utility begins negotiating new contracts know cpuc action overcome suppliers reluctance extend contracts current situation according pg e gas utility spokesperson staci homrig operational side pg e wednesday declared low inventory ofo cold snap causing supplies burned pipeline shippers bringing system action thought help cause pg e citygate price jump 11 17 wednesday reports low storage homrig said utility supplies low adequate next week dipping cushion base gas point homrig said lynch said pg e defaulted payments nevertheless considers predatory practices suppliers required advance payments payment time supplies provided gas suppliers taking advantage emergency situation extract another pound flesh lynch said voting securitization measure suppliers paid due saying regardless existing agreements pay us today coldest time year commissioners take difficult steps allow pg e amend agreements order keep gas flowing part cpuc action places 90 day limit securitization option way gas contracts work effect provides another 30 days worth supplies said homrig noted almost pg e 25 30 suppliers asked special payment arrangements advances cash delivery letters credit company accommodate cash flow crisis ongoing negotiations parties came securitization proposal customer account receivables thus assuring get paid gas side pg e sufficient revenues unlike electric business suppliers wanted let utility stick normal payment arrangement severe credit rating decline past weeks cpuc met san francisco late wednesday afternoon midst whirlwind day public announcements governor state legislature consumer groups regulators utilities key piece missing however california state legislative leaders called morning briefing offered latest legislative proposals dealing energy crisis reportedly sticking points remain centered key questions pays solutions deeply state gets energy business spokesman assembly speaker office said idea briefing would scheduled one piece legislation got state senate sb lx yesterday authorizes another 500 million emergency funds purchase power also would allow state water resources department utilities wholesale power supplier long term contracts least 2002 measure drew protest cpuc commissioner richard bilas argued state agency removed role quickly possible bill first passed state assembly returned assembly committees last night iron changes made senate would ratified assembly meanwhile consumer activists held rallies around state protesting state bail private sector utilities prompted least one utilities southern california edison come swinging saying recently released results utility financial audits show windfall profits diversion monies utilities parent company letter surfaced washington gov gray davis senate energy natural resources committee dated jan 30 outlining measures state taking increase energy supply decrease demand sign long term contracts maintain financial viability state public utilities letter catalogue recent initiatives already reported contained specifics long term contracts legislation signed would address immediate problem davis outlined measures taken speed siting new power plants saying additional 2 000 mw would online end year responding questions another arena edison international senior vice president tom higgins said everything table ongoing negotiations davis three person negotiating team two utilities including dropping pending lawsuit federal court los angeles crediting excess revenues utilities generation whopping wholesale power cost collections state remained power watch 16 th day california independent grid operator cal iso urged conservation reserves remain low