2003 Contracts Meeting

Tuesday, March 29, 2005

The California Public Utilities Commission ordered Pacific Gas and Electric Company (in D. 01-09-016) to file an application relating to the market structure, rates and terms and conditions of service for the company's gas transmission and storage system for the period beginning January 1, 2003. In response, Pacific Gas and Electric Company recently asked the CPUC (in A.01-10-011) to extend the Gas Accord by two years.

On February 26, 2002, the Assigned Commissioner and Administrative Law Judge issued a Scoping Memo and Ruling outlining certain issues raised by parties, and setting a schedule for testimony and hearings on these issues. The memo encourages parties to resolve these issues before the start of hearings in early August. (You may download the Scoping Memo and Ruling at the PG&E Regulatory Cases Web site This link will open in a new window by choosing "text and properties search" and running a properties search on the case Gas Accord II.)

One of the key issues to be resolved is the extension of Gas Accord firm transportation and storage capacity contracts beyond December 31, 2002, and March 31, 2003, respectively. Pacific Gas and Electric Company is very concerned that if this issue goes to hearing there will be no time available for the re-contracting process and for an open season for new and/or relinquished capacity. This situation would likely create considerable market uncertainty for the upcoming winter, which is not desirable for market participants and end-use customers.

To facilitate timely resolution of this issue, Pacific Gas and Electric Company invites all market participants to a meeting on Wednesday, April 10, from 9:00 a.m. to noon. A light breakfast will be served. The meeting will be at Pacific Gas and Electric Company's headquarters, 77 Beale Street, San Francisco, Conference Room 307. Please provide the names and affiliation of all persons planning to attend this meeting by e-mailing Courtney Crewe at Due to heightened security at Company facilities, this RSVP is required to facilitate your access to the general office complex.

Prior to this meeting, Pacific Gas and Electric Company expects to provide participants a draft proposal addressing the contracting and open season issue. The Company also expects to arrange settlement discussions for the other issues identified in the Scoping Memo and Ruling at a future date.

California Gas Transmission encourages its customers' participation in these important discussions. Comments or questions may be addressed to Dan Thomas at 415.973.7974 or Roger Graham at 415.973.2293.

Subject to Rule 51 of the CPUC Rules of Practice and Procedure, Rule 601 et seq. of the FERC Rules of Practice, Rule 408 of the Federal Rules of Evidence, and Section 1152 of the California Evidence Code.

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