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Frequently Asked Questions: Establishing Credit with Pacific Gas and Electric Company

Why must I complete a credit application?

All California Gas Transmission Gold Coast Transportation and Golden Gate Market Center services require the following:

  • Established creditworthiness with Pacific Gas and Electric Company
  • A signed Gas Transmission Service Agreement (GTSA)
  • Signed exhibit(s) for the specific paths and/or services

What will happen to my requests for transmission services if I have not received credit approval from Pacific Gas and Electric Company?

Your requests for transmission services will not be evaluated or awarded unless your credit is approved and your GTSA is executed.

Do I need to establish credit if I only plan to do pool to pool trading?

Pool to pool trading requires a GTSA and you must complete a credit application in order to obtain a GTSA. However, pool to pool trading alone does not require affirmatively establishing a positive dollar amount of credit.

What are the most important points I need to know about completing the credit application?

The most important point is to fill out the application completely. Each application must have all sections fully completed, a customer signature and the requested financial information before it can be processed.

What is a DUNS number?

A DUNS number is a distinctive nine-digit identifier that has become an industry standard for tracking businesses.

How do I get a DUNS number?

For specific questions on requesting a DUNS number, contact Dun & Bradstreet at 1-800-333-0505 or visit their Web site. In order to receive a DUNS number, you will need to provide the following information:

  • Name of Business
  • Ownership type (Corporation, Partnership, etc.)
  • Line of Business
  • Number of Employees

What formulas should I use to estimate the maximum monthly dollar value of services to be purchased or received from Pacific Gas and Electric Company's California Gas Transmission?

Transportation

Firm Transportation: Estimated value = MDQ * ((2 * monthly reservation rate) + (75% * 61 * volumetric rate))

As-Available Transportation: Estimated value = MDQ * volumetric rate * 61 days * 40%

Storage

Firm Storage: Estimated value = reservation rate * volume of inventory / 6

As-Available Storage Injection or Withdrawal: Estimated value = number of days, up to 61 days maximum * MDQ * volumetric rate

Park and Lend

Park: Estimated value = total exhibit quantity * volumetric rate

Lend: Estimated value = total exhibit quantity * (volumetric rate + commodity price)

A published Citygate index price should be used as an estimate of commodity price.

Balancing Aggregation

Noncore Balancing and Aggregation Agreement (NBAA): Estimated value = 5% * 61 days * total MDQ of all NGSAs in NBAA * commodity price

A published Citygate index price should be used as an estimate of commodity price.

Core Transport

Core transport credit requirements and credit alternatives are defined in gas Rule 23. A core transport credit worksheet is available, upon request, to assist with the calculation of the core firm storage credit requirement.

The procurement credit requirement can be reduced up to 80% by using the guaranteed deliveries option outlined in gas Rule 23.

For a CTA who bills customers for procurement only: Estimated value = 90 days * daily contract quantity * core weighted average cost of gas in the current BCAP * 150%

For a CTA who bills customers for procurement and collects transportation charges for Pacific Gas and Electric Company: Estimated value = (90 days * daily contract quantity * core weighted average cost of gas in the current BCAP * 150%) + (75 days * daily contract quantity * average core transport rate)

The core weighted average cost of gas in the current Biennial Cost Allocation Proceeding (BCAP) is $3.50/Dth.

Where do I return my completed credit application?

Completed credit applications may be mailed to the following address:

Pacific Gas and Electric Company
Products and Sales Department, Credit Application
Mail Code N15A
P.O. Box 770000
San Francisco, CA 94177

Customers wishing to express mail their credit applications should use the following address:

Pacific Gas and Electric Company
Products and Sales Department, Credit Application
Mail Code N15A
245 Market Street
Room 1504A
San Francisco, CA 94105

What happens after I've submitted my credit application?

Pacific Gas and Electric Company will review your credit application. If the credit line requested is not approved, you will be notified by fax or telephone by a Pacific Gas and Electric Company representative.

Once your credit application has been approved, we will send you two copies of your Gas Transmission Service Agreement (GTSA). Both copies of the GTSA must be signed and returned to Pacific Gas and Electric Company before you may request service. You must have approved credit and an executed GTSA in order to request service.

The credit application and GTSA are among the Standard Forms that you may download from this site.