Shrinkage Adjustment Effective November 1, 2008

Monday, October 27, 2008

The California Public Utility Commission on October 24, 2008, approved minor revisions to Pacific Gas and Electric Company's gas Rule 21 - Transportation of Natural Gas. In its filing Advice 2959-G, PG&E updated shrinkage rates based on shrinkage history, current throughput forecasts for 2009 and included an adjustment to eliminate the current shrinkage under-collection. Shrinkage gas is provided in-kind by shippers to fuel compressors and to replace lost and unaccounted for gas supplies.

Effective November 1, 2008, the shrinkage rate for the core distribution level of service will change from 3.1 percent to 3.3 percent, an increase of 0.2 percent. The existing overall backbone transmission shrinkage rate for the Baja, Silverado, and Redwood to On-system transmission paths will remain unchanged at 1.3 percent. The Redwood to Off-system transmission path will also remain at 0.9 percent.

The current and historical shrinkage rates are available on Pipe Ranger. If you have any questions regarding the shrinkage rate change for November 1, 2008, please contact your CGT Account Services Representative.

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