PG&E's California Gas Transmission is pleased to announce preparations for a Baja Path open season from May 11 through June 1, 2009, for three tranches of firm transportation service. In the open season, CGT will allow interested parties to request firm service on its Baja Path for terms from one to fifteen years with estimated contract start dates of June 1, 2011; January 1, 2013; and January 1, 2014.

Annual firm transmission capacity on the Baja Path is currently sold out through December 2013; however, CGT has identified expansion projects that may be implemented based on customer interest. This open season provides a new opportunity to hold firm rights previously unavailable on the Baja Path.

Holding CGT firm transmission capacity:

• Provides certainty for long-range business planning and the security of transportation rights on a reliable and established pipeline
• Allows for procurement of supply directly at the California border
• Reduces the need to procure capacity from a third party at a later date

Additionally, all CGT transmission customers enjoy monthly balancing privileges and easy access to California storage facilities.

Our Senior Gas Traders are eager to share this opportunity with you. Complete open season details will be provided on the Pipe Ranger Web site prior to May 11, 2009.