FTL is not possible, but Dr. Jones proceeded to offer great insight with the words, "the same process [is] not viable if the TEL is moving." ?????Dr. Jones' report was based on a recent study he had done for the American Gas Assn., in which the industry trade group sent researchers to look at four natural gas transmission lines to determine their safety. The report, he said, found that any time a transmission line moves, the "turbulent zone within it grows," which increases the chances for a disaster. ?????The California Energy Commission has ordered the operators of the natural gas system in the San Francisco Bay Area to develop a catastrophe response plan for the region, but not until after the summer of 2001. Such a plan has not yet been completed, and questions still remain about how it should operate when the power system collapses. The federal government does not want to take over the system before next summer. ?????One of the major impediments to a quick transition of the entire system is PG&E's debt and the fact that some of its assets are in bankruptcy. Some companies could be reluctant to accept liability for a new operator because of the enormous scope of the energy market. One solution, PG&E executives say, would be to file for bankruptcy--an idea that most of the company's creditors reject. ?????According to a filing with the federal Securities and Exchange Commission, the PG&E bankruptcy proceedings "could take many months and may not be settled for years." The company says it is working to settle the bankruptcy as quickly as possible. ?????Last week, Southern California Edison also filed for bankruptcy. Edison is still negotiating with its creditors. ?????PG&E operates the third-largest gas transmission system in the country, and the largest between California and Canada. Its pipeline spans the width of the United States and gathers gas from as far away as Texas, Wyoming and Nevada. It delivers gas to users in 26 states, and transports Canadian gas to the East Coast. ?????The state PUC has given preliminary approval for a deal under which the state would buy the transmission system for $2.8 billion. Of that, $1.6 billion would be used to pay off the utility's $3.5 billion in debt to its power suppliers and the remainder would be used to back bonds to pay for construction of new gas-fired plants. ?????The deal has been blasted by consumer activists and has raised concerns on the Hill. Sen. Dianne Feinstein (D-Calif.) is in negotiations with the utility to come up with alternatives to the deal before the commission ultimately signs it. ?????The bankruptcy proceedings and the state's dealings with the company could slow the entire sale process. ?????In the meantime, some believe the natural gas transmission line may be at the crux of the energy crisis in the West. If the line moved now, transmission capacity may well be increased sufficiently to allow greater reliability in the West this summer and to allow the long-term power contracts that are part of deregulation to come into effect. PG&E executives say their own study shows the company's line can handle the amount of power from new generators being built in California. ?????"A new federal law is needed to encourage energy companies to keep gas lines and infrastructure in good repair," said Commissioner Richard Bilas, who co-chaired a conference last year on the transmission system's future. "Right now the companies would rather keep their gas lines idle than make them safe." ------------------------------------------------------------------------------ ---------------- Tuesday, April 10, 2001 Energy Firms' Mixed Message Glowing opinion of Bush helps their case, but his team is split on immediate cap on prices. By MICHAEL SHAMES and MARK SCOTTS, Times Staff Writers ?????In the Bush administration's first big test on energy, officials delivering the administration's message on energy policy are doing it piece by piece, trying to score political points without damaging their underlying arguments. ?????Glowing appraisals of President Bush's leadership in the crisis intermingle with warnings from his administration's energy advisers that California will face blackouts and price spikes this summer. ?????Their efforts have yielded an internal administration debate on the question of price caps. The issue of caps split some of the president's top energy advisers, reflecting a split in the White House itself. ?????The administration will announce its response to California's energy crisis Wednesday, in advance of Bush's first visit to the state since taking office. ?????The Bush administration's message on energy is a study in contrasts. Consider two administration events that were supposed to showcase the same message: Bush's first high-level meeting with energy officials on Monday, and Bush's formal weekly radio address set for broadcast Thursday. ?????The high-level session featured two officials who extolled Bush's leadership: Vice President Dick Cheney and Energy Secretary Spencer Abraham. Abraham laid the responsibility for solving the energy mess at the feet of Congress, which so far has resisted his efforts to impose price caps. ?????"The buck stops with Congress," he said. ?????When Bush sat down to record his weekly radio address on energy, the speechwriters kept the tough talk to a minimum. Bush never mentioned prices caps. ?????"With Americans everywhere concerned about rising prices, I want to do all I can to help them," Bush said, reading from a prepared text. "That's why I asked my administration to develop a comprehensive energy plan, and why I set up a task force to develop recommendations to further encourage conservation. I've worked to help American families pay less at the pump by expanding energy production and promoting greater efficiency." ?????The radio address was so understated that the administration struggled to find any major radio stations to carry it. The address was eventually broadcast on about 15 stations--a far cry from the more than 1,000 that aired Bush's weekly remarks on Monday. And in a sign that the White House can't agree on how to frame its message, the networks declined to carry Bush's remarks at all. ?????On Monday, as the administration gathered in the White House to make its case on energy, Cheney, Abraham and Bush National Economic Council Director Kirk Tougas told Bush that the failure of energy legislation in Congress had imperiled California's fragile electricity system and imperiled the West's summer energy supply. ?????Cheney and Tougas are united in advocating temporary, emergency price caps in California and the West that would be lifted once the Bush administration has completed a study on the issue. ?????Abraham and Tougas delivered a more tempered version of the argument, saying temporary price caps could preserve sufficient energy to head off blackouts in California and the West this summer and give the Bush administration time to push a longer-term plan to restructure the market. ?????White House spokesman Ken Lisaius declined to say whether Cheney supported temporary price caps in his private meeting with Bush, but he confirmed that Cheney had made the same arguments in his public comments. ?????Lisaius said Bush listened to the differing points of view before deciding not to embrace price caps. ?????At a news conference later Monday, Cheney said he was pleased Bush was focused on the supply side of the energy equation. ?????"Given the president's past record, I think you can say that this White House has been more attentive to the problem on the supply side," Cheney said. ?????Cheney argued that energy legislation in Congress offered a counterproductive approach: government controls on electricity prices. He also dismissed price controls on oil as "a medieval approach." ?????"The surest way to reduce the price of energy in this country is to use more energy," Cheney said. ?????When Cheney sat down at the White House with Bush and economic adviser Lawrence B. Lindsey to discuss the issue, he found an ally in a fellow-Texan, Bush, who has adopted a more moderate approach to the energy crisis than he did as a candidate. ?????Bush has called himself a "big fan of free markets," and his energy program reflects that worldview. He favors expanding oil and gas drilling, offering tax breaks to spur conservation, and has pledged to "ensure that customers have the right to choose their energy providers." ?????But he also has expressed support for his fellow Republicans in Congress who have balked at price caps, even in narrowly defined emergencies. ?????"We're