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On March 19, 2004, Pacific Gas and Electric Company filed its Gas Transmission and Storage 2005 Rate Case Application, as required by the California Public Utilities Commission in last year's Gas Accord II -- 2004 Decision.

The application proposes gas transmission and storage rates for 2005. The proposed $435 million revenue requirement represents a $1 million decrease compared with 2004. Additionally, the proposal more accurately assigns operations and maintenance costs between storage, local transmission and backbone transmission, and between the Redwood and Baja paths. These improved cost allocations result in reduced local transmission rates and increased backbone transmission rates. Pacific Gas and Electric Company also proposes that Redwood and Baja path rates be equalized (excluding Redwood to on-system core).

As ordered by the CPUC, this application also addresses a new backbone level service that will be offered to qualifying noncore end-use customers beginning in 2005. Pacific Gas and Electric Company proposes that backbone level service will be available to noncore end-use customers that meet all of the following criteria:

• The load must be new or incremental on or after March 1, 1998.
• The load must never have been physically connected to Pacific Gas and Electric Company's local transmission or distribution system.
• The lateral that delivers gas from the backbone transmission system must be either owned by the customer or, if owned by Pacific Gas and Electric Company, paid for by the customer.

Customers meeting all these criteria would no longer pay local transmission charges.

The application proposes no changes to operations, nominations or balancing rules. Current procedures for diversions or local curtailments would remain unchanged in 2005.

For complete details, the application is available from Pacific Gas and Electric Company's Web site. From the Search for Public Case Documents Web page, select the case GTS Rate Case 2005, then click Search Properties. Additionally, your California Gas Transmission Account Services Representatives are available via the CGT Helpline 1.800.343.4743.