No Changes to Transmission or Distribution Shrinkage November 1st

Monday, October 18, 2010

Pacific Gas And Electric Company's California Gas Transmission wishes to inform customers that it has reviewed its current natural gas in-kind shrinkage allowances for backbone transmission and distribution service shown in PG&E's gas Rule 21 This link will open in a new window and is proposing no changes to the shrinkage allowances at this time. PG&E is authorized to update its backbone transmission and distribution in-kind shrinkage allowances on an annual basis through an advice letter compliance filing. The annual update to these shrinkage allowances is normally effective November 1.

As agreed upon in the Joint Motion of Settlement Parties for Approval of the "Gas Accord V" Settlement This link will open in a new window filed on August 20, 2010 (A.09-09-013), PG&E will implement seasonal core distribution shrinkage allowances upon final CPUC approval, with a requested effective date of January 1, 2011. PG&E plans to coordinate this year's annual shrinkage allowance update for transmission and distribution service with the implementation of the seasonal core distribution allowances in order to minimize the number of changes to shrinkage over the next few months.

Below are the seasonal core distribution shrinkage allowances as proposed in the Gas Accord V Settlement to be effective January 1, 2011. While they have not been approved at this time, CGT encourages customers to preview the proposed seasonal core distribution shrinkage rate changes.

Based on current distribution shrinkage allowances Current Proposed Change
 Noncore Distribution  0.2%  0.2%  N/A
 Core Distribution - Winter Season (November - March)  3.0%  3.5%  +0.5%
 Core Distribution - Summer Season (April - October)  3.0%  2.2%  -0.8%

The current and historical shrinkage rates are available on Pipe Ranger. If you have any questions regarding shrinkage, please contact your CGT Account Services Representative. PG&E will continue to monitor shrinkage and, if necessary, will update the shrinkage rates through a future advice letter compliance filing. Any updates to this information will be posted on Pipe Ranger.