The January cumulative imbalance statements sent to both core and noncore customers last night did not accurately reflect the new distribution shrinkage rates effective January 1, 2004. Cumulative imbalances shown in INSIDEtracc today also do not reflect the new distribution shrinkage.

Tonight corrected imbalance statements will be faxed and mailed to affected customers and INSIDEtracc's cumulative imbalances will be corrected.

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