If the Pipeline represents half of the total capacity into California then the per centage of total gas witheld would be %3.2 and %10.5. Certainly the gas price would go up and perhaps there wasn't enough gas to transport at the prices in the period previous to the period in question. I.E. Just the witholding of capacity would not seem to account for the large increase in prices .
Pipeline |
Current Capacity |
Capacity Additions |
2002 Total Capacity |
PG&E El Paso Transwestern Kern River Southern Trails |
1,920 3,290 1,090 700 -- |
200 500 -- 125 90 |
2,120 3,790 1,090 825 90 |
Total |
7,000 |
915 |
7,915 |
http://www.energy.ca.gov/naturalgas/natural_gas_pipelines.html
El Paso didn't create the situation, they just profited from it by making it worse.
Regardless, this current decision has nothing to do with pricing. It concerns the obligation of a pipeline to carry its rated capacity.
The fact that El Paso owns natural gas production as well as transmission simply gave them the motive.