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** NATURAL GAS WATCH ** February Natural Gas Bills 6.7 Percent Lower Than One Year Ago

Release Date: February 7, 2008
Contact: PG&E External Communications (415) 973-5930

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Gas prices across the United States have increased since last month due to increased space heating demand, as temperatures across much of the nation are lower than in early to mid December. Natural gas costs typically rise or fall in the winter months, depending on weather and market conditions, but PG&E has worked to protect our customers from severe price changes through smart purchasing decisions, financial hedging against price spikes, and using our extensive pipeline and storage infrastructure to help lower gas purchase costs.

For customers to maximize this winter’s 10/20 Plus Winter Gas Savings program, energy efficiency and conservation remain important. Turning down your thermostat by just one or two degrees and weather stripping are two easy ways to save on your winter heating bills. More energy saving tips, as well as information on the 10/20 Plus program is available at www.pge.com/winter. A forecast of PG&E natural gas rates and bills over the next year is also available at www.pge.com/tariffs.

All customers should also be aware that they have a choice of gas supplier, and that PG&E supports this choice. Customers are encouraged to explore their gas purchasing options with alternative suppliers that are listed at www.pge.com/gaschoice . Other suppliers can provide different pricing and billing options for natural gas that may be more advantageous for individual customers.

Residential Natural Gas Cost Comparison:

AVERAGE RESIDENTIAL CUSTOMER February-08 January-08 Percentage Change February-07 Percentage Change
Therms of Gas Used 63 77 -18.2% 73 -13.7%
Cost of Gas Procurement
(per therm)
$0.849 $0.781 8.7% $0.766 10.8%
Average Transportation Charge
(per therm)
$0.439 $0.439 0.0% $0.431 1.9%
Total Rate $1.288 $1.220 5.6% $1.197 7.6%
Public Purpose Program (PPP) Surcharge $0.048 $0.048 0.0% $0.039 23.1%
Total Rate
(including PPP Surcharge)
$1.336 $1.268 5.4% $1.236 8.1%
Total Natural Gas Bills
(including PPP Surcharge)
$84.17 $97.64 -13.8% $90.23 -6.7%


Notes: Beginning in December 2007, PG&E has revised the average residential therms of gas used in computing the average natural gas bills to better reflect actual and forecast usage of the typical single family residential gas customer. February 08 and January 08 reflects forecast usage, and February 07 reflects actual usage, for the average single family residential gas customer. Totals may not match exactly due to rounding.


Definitions:
Therm: A measurement for natural gas. One therm contains thermal energy equivalent to 100,000 British thermal units.
Procurement: The weighted average cost of natural gas supply and transportation to PG&E’s local transmission system. Procurement rates change monthly to reflect a new cost of gas.
Transportation: Gas transportation and delivery to PG&E’s customers. Rate reflects an annual average of baseline rates and excess over baseline rates.
Gas Public Purpose Program (PPP) Surcharge: Mandated gas social programs.

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