BTU levels have started dropping and are returning to normal levels on PG&E's pipeline system. Based on system conditions, BTU levels are expected to return to normal in the affected areas within the next two days.

The higher-than-normal BTU gas California Gas Transmission announced June 1, 2006 has arrived. This high heating value gas is the result of the Cochrane Stripping plant, located in Canada, shutting down for scheduled maintenance. The high BTU gas entered the PG&E system at Malin, Oregon around 11:00 P.M. on June 5, 2006 and will arrive in the Antioch, California area at approximately midnight Tuesday, June 6, 2006. The heat content of the gas has leveled out at approximately 1068 BTU. The BTU could change over time and we will share more information as it becomes available. The BTU level throughout PG&E's system will remain within existing parameters for safe and reliable equipment operation. If you have any questions, please contact your CGT Account Services Representative.

Pacific Gas and Electric Company's California Gas Transmission expects to receive higher-than-normal heating value gas into its system at Malin, Oregon, starting around June 5, 2006, and lasting about six days, depending on system throughput.

This high heating value gas is the result of the Cochrane Stripping plant, located in Canada, shutting down for scheduled maintenance. This shutdown will temporarily increase the BTU content of gas by approximately 6%, to about 1,080 BTU per cubic foot, as it works its way through the PG&E system. Based on system conditions, the high BTU gas volumes are expected to reach but not extend beyond Stockton, Yosemite, the San Francisco Bay Area, and the Central Coast region. Customers south of these regions should not be affected.

The BTU content throughout PG&E's system will remain within existing parameters for safe and reliable equipment operation. However, some customer processes may be sensitive to natural gas heat content, especially electric generation facilities, refineries, glass manufacturers and commercial customers using natural gas for cooking and drying. Customers testing their emissions may notice the increased BTU content. PG&E Account Managers are contacting larger end-use customers who have been identified as having a high sensitivity to the BTU content of their gas, allowing them to make adjustments as needed. CGT will provide additional information on the Pipe Ranger Web site as conditions warrant, including the date heating values throughout the PG&E system will return to normal.