News

Pacific Gas and Electric Company and seventeen parties recently signed the Gas Accord II Settlement Agreement, which now awaits California Public Utilities Commission (CPUC) approval. The Settlement has wide support from all sectors of the natural gas and electric power industries, including the CPUC Office of Ratepayer Advocates.

If approved, the Settlement will:

• Give most holders of 2002 firm backbone and storage capacity an option to extend their contracts into 2003.
• Authorize Pacific Gas and Electric Company's California Gas Transmission (CGT) to offer any available 2003 annual firm Redwood, Baja, or storage capacity in an Open Season.
• Extend the current Gas Accord structure for one year, freezing backbone transmission, local transmission and storage tariffs at their 2002 rates.

In anticipation of CPUC approval of the Settlement-which may come as early as August 22-CGT now offers several documents in the Pipe Ranger Library explaining how you may participate in the Extension and Open Season.

Please remember these Extension and Open Season materials are preliminary and subject to change based on the substance and timing of a CPUC decision on the Gas Accord II Settlement Agreement. Following a final CPUC decision, CGT will update and redistribute Extension and Open Season materials.

CGT provides this information now, prior to CPUC approval, so that customers will have sufficient time to secure credit and management approval for any Extension and Open Season commitments they may choose to make. Given the fast-approaching CPUC decision, customers may need to take action prior to final CPUC approval. Most immediately, customers wishing to participate in the Open Season must begin the process for credit approval by August 27, 2002.

On August 6, the following materials were mailed to all CGT and Pacific Gas and Electric Company noncore gas customers. Please review them thoroughly, paying particular attention to critical deadlines.

• The Guide to the Extension and Open Season describes the rules, requirements and deadlines for both the Extension and the Open Season.
• The Preliminary Timeline highlights important dates in the Extension and Open Season process. Following a CPUC decision, CGT will distribute an updated, final Timeline.
• Establishing Credit highlights deadlines and describes the amount of credit required to participate in the Extension and Open Season.
• The Pro Forma Request for Firm Service (pdf format only) is a preliminary draft of the binding request form customers will use to request Open Season capacity. Following a CPUC decision, CGT will distribute an updated, final Request for Firm Service form.

As you know, demand for annual firm CGT capacity has been quite strong. The Extension and Open Season may represent your only opportunity to secure reliable, economical firm transportation and storage for 2003. Please contact your CGT Account Services Representative if you have any questions.