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PG&E Files Gas Accord II-2004 Application

Friday, March 25, 2005

On January 13, 2003, Pacific Gas and Electric Company filed its Gas Accord II Amended Application and accompanying testimony with the California Public Utilities Commission. This filing, Docket Number A.01-10-011, made in response to an order by the Assigned Administrative Law Judge Wong, proposes to extend the Gas Accord market structure for 2004 and beyond, tighten reliability standards, and refine certain operational procedures.

The filing also seeks to increase rates for 2004, reflecting moderate levels of gas throughput and increased costs. The Gas Accord has already been extended through 2003, at 2002 rates, by the Gas Accord II Settlement Agreement, approved by the CPUC in August 2002.

Highlights of this filing for 2004 include:

  • An increase in the storage inventory available for the noncore storage program, and an increase in the storage assets used for balancing.
  • Implementation of NAESB-style bumping of gas nominations.
  • Replacement of the current gas supply diversion process with a more orderly and predictable end-user curtailment process.
  • Increased reliability standards for core supply and for delivering from the city gate.
  • A change from a single noncore local transmission rate to a four-tiered rate based on historical annual usage.

Other parties' opening testimony is due on February 28, 2003, and rebuttal testimony is due March 24, 2003, with evidentiary hearings commencing on April 1, 2003. The timing of the Commission decisions on this Application is yet to be determined.

For your reference, copies of the application and testimony are available.

Please contact your CGT Account Services Representative with questions.

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