Gas Accord II Settlement Signed

Friday, March 25, 2005

On Monday, May 20, Pacific Gas and Electric Company and numerous parties submitted the Gas Accord II Settlement Agreement to the California Public Utilities Commission, asking for prompt CPUC approval.

Upon approval, the Settlement would extend for one year the current Gas Accord market structure for natural gas transmission and storage in Northern California. The Settlement would offer 2002 firm contract holders the option to extend their contracts for one additional year. Rates would be frozen at 2002 levels. Any remaining annual firm transmission and storage capacity would be offered to market participants in an open season, proposed to be held in September 2002.

The Gas Accord II Settlement has wide support from all sectors of the natural gas and electric power industries, including the CPUC Office of Ratepayer Advocates. The Settlement will help ensure that ample supplies of competitively-priced natural gas are in place for the winter heating season. By providing suppliers the opportunity to continue existing transmission and storage contracts for a one-year period, the Settlement would also help stabilize the electric market.

The complete Gas Accord II Settlement Agreement and the Joint Motion for Approval are available in the Settlements wing of the Pipe Ranger Library. A CGT Account Service Representative is available to answer any further questions you may have.

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