CGT Now Offers Backhaul Service Using Firm Transportation

Thursday, July 17, 2003

Pacific Gas and Electric Company's California Gas Transmission announces backhaul service using its firm transportation tariffs.

On June 28, 2003, the California Public Utilities Commission approved the Company's request to offer backhauls on an annual firm (G-AFTOFF) or negotiated firm (G-NFTOFF) basis. Previously CGT could only offer firm off-system deliveries to Kern River Station or High Desert Lateral, the two interconnects at which CGT can physically deliver gas off-system.

With backhaul service using a firm tariff, you may now move gas to any of CGT's off-system delivery points (including Malin, Daggett, Southern Trails, and Topock) using firm transportation. Displacement, rather than physical delivery, allows backhauls up to the volume of gas CGT physically receives from the upstream pipeline.

Backhauls using firm transportation offer a number of benefits. At some interconnects, backhauls using firm transportation will flow when backhauls using as-available transportation will not. Using the firm tariff to backhaul provides a higher level of reliability than backhauls using as-available transportation, especially when either the receipt or delivery point is constrained.

Additionally, backhaul service using firm transportation may allow shippers to document a complete chain of firm supply and transportation from origin to destination, increasing the confidence level of customers, counterparties, and creditors.

Contact your CGT Sales Representative today to discuss how backhaul service using firm transportation can add value to your portfolio.

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