Revisions to Pacific Gas and Electric Company's gas Rule 21 - Transportation of Natural Gas were recently approved by the California Public Utility Commission and are effective April 1, 2006. In its filing (Advice 2706-G) PG&E requested an adjustment of the Storage In-Kind Shrinkage Allowance from the current 1.0 percent to 1.1 percent.

This shrinkage adjustment is due to slightly higher utility fuel use and lost and unaccounted for gas volumes associated with PG&E's gas storage operations in 2005. The In-Kind Shrinkage Allowance of 1.1 percent is applicable to all injection storage quantities under rate Schedules G-CFS, G-SFS, G-NFS, and G-NAS, in addition to any applicable transmission and distribution shrinkage. If you have any questions regarding the storage shrinkage change for April 1, 2006, please contact your CGT Account Services Representative.