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For gas day June 30, 2001, PG&E called a System-Wide OFO even though the requirements for a Customer-Specific OFO were met.

Recent operating experience and the current market conditions led PG&E to call the System-Wide OFO. The recent high inventory Customer-Specific OFOs have not resulted in improved pipeline system conditions. Rather, we have seen non-targeted customers create significant imbalances.

This notice is provided in accordance with the OFO Settlement, which states, "PG&E will post an explanation of the factors causing PG&E to determine not to call a customer-specific OFO..."(Section C.3.b (9), page 9).