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Pacific Gas and Electric Company and Gill Ranch Storage, LLC, a subsidiary of NW Natural, have both filed applications with the California Public Utilities Commission on July 29, 2008, for a Certificate of Public Convenience and Necessity (CPCN) for development of new gas storage facilities. PG&E and Gill Ranch Storage, LLC are co-developers in a gas storage project located about 25 miles west of Fresno which will be connected to PG&E's gas transmission Line 401.

The CPCN process is expected to take about a year to complete, including environmental review under the California Environmental Quality Act. If approved, the CPUC will authorize the construction of gas storage facilities and a related electric power line.

As a co-developer, PG&E's portion of the gas storage facility will initially provide approximately 5 billion cubic feet (Bcf) of additional underground gas storage capacity, which PG&E will integrate with its existing storage tariff service. The initial phase is anticipated to be completed in 2010 and the site has the potential to support a second phase of capacity development if market conditions are favorable. This new storage project will provide PG&E's California Gas Transmission customers more options and flexibility for their gas in the California market.

For additional information please contact CGT's Transportation and Storage Sales Consultants:

Allen DeBrum 415.973.0141 or Shannon Varjassy 415.973.6597.