by GoIllini » Tue 13 Dec 2005, 17:28:25
$this->bbcode_second_pass_quote('strider3700', 'T')here's always been a threat of the pipelines getting too empty. It almost happened a few years back in the east.
Remember just because gas is available doesn't mean that companies are able to afford it. They can't just pass the cost on to their customers right away, they usually need to have the increase ok'd. I'd assume they will try to provide as little as possible while they are losing money on it.
These companies, however, are likely significantly hedged for the time being. I don't think there are a whole lot of regulated utilities out there that would let themselves get locked into selling at a certain rate without buying options or futures.
Of course, there's always PCG's rolling blackouts, but that's more the exception than the rule. Unlike PCG, natural gas suppliers have seen these high prices coming for quite a while.