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 become effective on November 1, 2006.

In the approved Advice Filing , PG&E was granted an adjustment of 0.1% to the existing overall backbone transmission shrinkage rate for the Baja, Silverado, and Redwood to On-system transmission paths, increasing the rate from 1.2% to 1.3%. The Redwood to Off-system transmission path will remain at 0.9%. Additionally, the overall core distribution shrinkage rate was adjusted by 0.2% an increase from 2.9% to 3.1%.

These shrinkage percentages were updated to reflect PG&E's shrinkage forecast for 2007. If you have any questions regarding these shrinkage changes effective November 1, 2006, please contact your CGT Account Services Representative.