Pacific Gas Transmission Company

First Revised Volume No. 1-A

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Effective Date: 07/01/2000, Docket: RP99-518-015, Status: Effective

Original Sheet No. 7E Original Sheet No. 7E : Effective

Superseding: No. 7e

STATEMENT OF EFFECTIVE RATES AND CHARGES

FOR TRANSPORTATION OF NATURAL GAS

(Continued)

NEGOTIATED RATE AGREEMENTS UNDER RATE SCHEDULE FTS-1

Explanatory Footnotes for Negotiated Rates under Rate Schedule FTS-1

12/ The rate for this service shall be the 100% load factor equivalent of

the Reservation Charge plus Delivery Charge plus ACA Charge calculated

as follows:

Reservation Charge: $0.199838/Dth

Delivery Charge + ACA Charge: $0.010162/Dth

Total Transportation: $0.210000/Dth

Fuel shall be reimbursed in kind at the applicable monthly percentage as

posted on PG&E GT-NW’s EBB. However, in the event for any month during the

primary term of this agreement, PG&E GT-NW’s fuel rate shall exceed 0.0041%

per pipeline-mile, the Transportation Rate shall be adjusted downward by the

following formula:

[(KG Price / (1-S)) - KG Price] - [KG Price / 0.974889 - KG Price]

where "KG Price" is the Gas Daily Monthly Contract Index Price for "Canadian

Gas, PG&E GTNW (Kingsgate)" as reported in Gas Daily for the applicable

month, and "S" is the Kingsgate to Malin applicable month fuel expressed as

a decimal.