Credit illiquidity following the collapse of major banks and investment firms has put utility borrowing in a straight jacket, driving up the cost of short-term loans. Pacific Gas & Electric, for example, said the interest on its commercial paper has doubled. To tide PG&E over when it has big cash payouts, such as property taxes, it gets short-term loans. The amount of its short-term debt fluctuates between zero and $1 billion, said Brian Hertzog, spokesperson for PG&E Corp., the utility’s parent. In contrast, the amount of its long-term debt ranges from about $7-$8 billion, he added. Short term loans are from about 1– 270 days in length. The Sacramento Municipal Utility District said short-term loans of late have far more than doubled. A few days ago, its short-term annual interest rate went from 1 percent to 7.8 percent, according to SMUD assistant treasurer Larry Stark. The muni has about $400 million in short-term debt, including commercial paper. It holds $3 billion in fixed rate, long-term debt. The impact of long-term financing is anyone’s guess, though a subject of much discussion. Stuart Hemphill, Southern California Edison vice president of renewable development, said the utility’s renewable deals are not impacted because the developers won’t be needing long-term financing for a few years. According to Jan Smunty Jones, Independent Energy Producers executive director, “A big unknown is what long-term impact this has on renewable development based on tax swaps or other forms of project financing based on the tax credits having value to third parties. Many of the parties to these transactions have been damaged by the meltdown.”