Pacific Gas Transmission Company

First Revised Volume No. 1-A

Effective Date: 02/02/1998, Docket: GT98- 17-000, Status: Effective

Third Revised Sheet No. 13 Third Revised Sheet No. 13 : Effective

Superseding: Second Revised Sheet No. 13

RATE SCHEDULE FTS-1

FIRM TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.1 Reservation Charge

The Reservation Charge shall be the sum of the Mileage and the

Non-Mileage Component:

(a) Mileage Component

The Mileage Component shall be the product of the currently

effective Mileage Rate as set forth on Effective Tariff Sheet

No. 4, the distance, in pipeline miles, from the Primary

Point(s) of receipt to the Primary Point(s) of Delivery on

Mainline Facilities as set forth in Shipper's Contract, and

the Shipper's Maximum Daily Quantity at such Point(s).

(b) Non-Mileage Component

The Non-Mileage Component shall be the product of the

currently effective Non-Mileage Rate as set forth on Effective

Tariff Sheet No. 4 and the Shipper's Maximum Daily Quantity

at Primary Point(s) of Delivery on Mainline Facilities.

If Shipper is a Subject Shipper, the Mitigation Revenue

Recovery Surcharge for the Mileage and Non-Mileage Components

as set forth on Effective Tariff Sheet No. 4 shall be

included in, and become a part of, the maximum Mileage and

Non-Mileage Base Reservation Rates used for computing the

Mileage and Non-Mileage Components of the Reservation Charge.

The Mileage Component shall be designed to recover, on the

basis of the mileage billing determinants of the Subject

Shippers underlying PG&E GT-NW's currently effective rates,

mileage mitigation revenues not recovered from other shippers

in accordance with Article IV, Section 1(b) of the Stipulation

and Agreement in Docket No. RP94-149-000, et al., and the

Non-Mileage Component shall be designed to recover, on the

basis of the Non-Mileage billing determinants of the Subject

Shippers underlying PG&E GT-NW's currently effective rates,

Non-Mileage mitigation revenues not recovered from other

shippers in accordance with Article IV, Section 1(b) of the

Stipulation and Agreement in Docket No. RP94-149-000, et al.

(Continued)