update on lodi and wheeler ridge storage projects western undeterred by grueling regulatory process expressing frustration but continuing its resolve , texas - based western hub properties is ironing out some " technical issues " of financing with california regulators and now expects to start construction in february on its delayed lodi gas storage field in northern california . the merchant storage project will be operating by this time next year , said western hub ' s california - based manager , jim fossum , who added that with faster approvals , the project could have been in service during this summer ' s electricity generating crunch and the current gas and power shortages . despite the regulatory struggle , he said the company still plans to go through with its other california storage project near bakersfield and the natural gas hub called wheeler ridge . western has acquired leases on the property it needs and will start more detailed engineering of the proposed site over the first three to six months of next year . the company intends to make a filing with state regulators in summer of 2001 . in both the approved lodi project ( see daily gpi , may 19 ) and the proposed wheeler ridge storage field , western is not concerned about lining up customers , said fossum . the projects are not contingent on contracts , he said . " now that we are a bona fide ( certified plant ) utility under the california public utilities commission , we are getting some technical things worked out with the commission staff and nailing down the last small pieces of property , fossum said . " everything is basically ready to go at lodi " " we have to file with them documents that verify certain aspects of the project ' s financing . we can ' t move ahead with the financing until the cpuc approves it . " if we had not encountered all of the roadblocks that we have had , we could have helped with the problems this last summer , and we could be helping with problems right now . " he added that the project would not be operational in time to have any impact on the upcoming summer electricity demand and corresponding heavy natural gas demand to fuel power plants . lodi and the wheeler ridge storage project are being designed as high - deliverability storage facilities . lodi will have about 9 bcf of working capacity , building to 12 bcf . initially , fossum said , lodi should have about 400 mmcf / d injection capability and 500 mmcf / d withdrawal . in the southern half of the state , western for some time has been doing reservoir studies near wheeler ridge and now has a " couple of reservoirs that we think might work , " fossum said . " we ' re in the preliminary planning phase . " the wheeler ridge project would have an ultimate working capacity of 12 to 16 bcf and similar 500 mmcf / d deliverability at its peak . he said western hopes to have something operational in the wheeler ridge area by the end of 2002 .