Two Shrinkage Rates Change March 1, 2006

Friday, February 17, 2006

Revisions to Pacific Gas and Electric Company's gas Rule 21 - Transportation of Natural Gas were recently approved by the California Public Utility Commission. The CPUC has approved two gas transportation shrinkage rate revisions effective March 1, 2006. The Redwood to Off-system transportation shrinkage rate will be reduced by 0.1 percent and Core distribution shrinkage rates will increase by 0.8 percent. Shrinkage rates for storage are not affected.

In the filing (Advice 2655-G) PG&E updated its shrinkage rates based on throughput forecasts for 2006 and also included an adjustment to eliminate an existing shrinkage under-collection. The rates effective March 1, 2006 are shown in the table below.

TransportationCurrentEffective 3/1/06Total Net Change
Transmission Redwood to Off-system 1.0% 0.9% (0.1%)
Transmission Mission to Off and On-system 0.0% 0.0% 0.0%
Transmission (All Other Paths) 1.2% 1.2% 0.0%
Distribution Noncore 0.2% 0.2% 0.0%
Distribution Core 2.1% 2.9% 0.8%

The current and historical shrinkage rates are always available on Pipe Ranger. If you have any questions regarding the shrinkage rate changes for March 1, 2006, please contact your CGT Account Services Representative.

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