PG&E to Increase Storage Reliability

Friday, June 17, 2005

On June 6, 2005, PG&E decided to move forward with construction of Line 57C, a significant storage reliability project. PG&E's California Gas Transmission will proceed immediately with permitting, materials procurement, and construction contracting.

PG&E's Line 57B currently transports gas 17 miles between the McDonald Island underground storage field and the backbone transmission system. Although the probability of a failure of Line 57B is low, it does cross an area of the Sacramento River Delta that is the subject of increasing concerns about the stability of the Delta levee system. Line 57C will provide a second path for gas from McDonald Island to reach the backbone. Line 57C's 6.2 miles of 24-inch pipeline will travel a different route, enhancing the reliability of critical supplies from the McDonald Island storage field.

The California State Lands Commission will be the lead agency for California Environmental Quality Act review. Pending timely environmental review and permitting, CGT anticipates construction will begin in the summer of 2006 and commercial operation will commence in November 2006. Because the Gas Accord III Settlement fixes rates through 2007, PG&E expects Line 57C costs to be addressed in its next Gas Transmission and Storage rate case.

Stay tuned to Pipe Ranger for updates on this construction project and PG&E's efforts to raise the bar on storage service reliability.

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