Updated Prepared Testimony

On March 18, 2003, Pacific Gas and Electric Company filed Gas Accord II --2004 Updated Prepared Testimony with the California Public Utilities Commission. The Company made this most recent filing, in Docket Number A.01-10-011, in response to Administrative Law Judge Wong's Ruling of February 14, 2003 directing Pacific Gas and Electric Company to remove its proposed cost of capital testimony from the proceeding. As a result, rates proposed in the Updated Prepared Testimony are lower than the rates proposed in the original Gas Accord II -- 2004 Application. The following table compares Annual Firm Backbone Transportation (G-AFT) rates, assuming SFV rate design at 100% contract usage ($/Dth):

Documents Available Online

The Gas Accord II-2004 settlement process will resolve market structure issues and set gas transmission rates for 2004. For your reference, copies of the testimony are available. Pacific Gas and Electric Company's Updated Prepared Testimony is dated March 18, 2003, and other parties' and the Company's rebuttal testimony are dated subsequent to this.

Please contact your California Gas Transmission Account Services Representative if you have any questions.