needles / topock price differentials i have had a casual chat with some of my accounts regarding their opinion of the market dynamics affecting the needles to topock price differentials . each customer focused more on the supply side dynamics of topock gas supplies , rather than the incremental intra - state transport costs required to transport to the pg & e citygate , as the primary driving force for the needles to topock price differential . here is a recurring theme i heard from my customers : the el paso merchant service ( epms ) 1 . 2 bcf contract ' s block ii capacity ( 500 mmcf / d of permian to pg & e / topock capacity , $ . 065 transport rate ) has a re - callable aspect . if epms schedules gas under the transport of block ii capacity to any other california delivery point other than pg & e / topock , then other parties may recall the capacity for their own use to pg & e / topock . currently duke has recalled 100 mmcf / d and pg & e energy trading has also recalled 100 mmcf / d for their use to transport permian gas to pg & e / topock . ( fyi - epmc may re - recall this capacity , but they have elected not to ) . these additional topock supplies coming from duke and pg & e energy trading under block ii capacity may be viewed as providing an oversupply of gas to pg & e at topock . this gas competes head to head with malin gas prices . for example , today ' s malin price is $ 4 . 62 while pg & e / topock price is $ 4 . 69 . today ' s cash price differential between needles and topock is $ . 60 , far larger than the previously assumed $ . 28 differential resulting from the intrastate cost required to bring topock gas to the citygate . if anyone else had additional market information or opinions regarding these market dynamics , let ' s discuss further at our next staff meeting . cs