Pacific Gas Transmission Company

First Revised Volume No. 1-A

Effective Date: 11/01/1998, Docket: CP98-167-002, Status: Effective

Second Revised Sheet No. 13A Second Revised Sheet No. 13A : Effective

Superseding: First Revised Sheet No. 13A

RATE SCHEDULE FTS-1

FIRM TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.1 Reservation Charge (Continued)

(d) Competitive Equalization Surcharge

The Mileage and Non-Mileage components of the Competitive

Equalization Surcharge 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

of shippers that have contracted for service utilizing, in whole

or in part, CES Capacity under a Firm Transportation Service

Agreement having a term of one year or more and shippers that have

obtained service rights from such shippers pursuant to Section 28

of the General Terms and Conditions of this FERC Gas Tariff. The

Mileage Component shall be equal to the Mileage Component of the

Mitigation Revenue Recovery Surcharge and the Non-Mileage

Component shall be equal to the Non-Mileage Component of the

Mitigation Revenue Recovery Surcharge. Shippers to which the

Competitive Equalization Surcharge applies, other than shippers

that have obtained service pursuant to Section 28 of the General

Terms and Conditions of this FERC Gas Tariff, shall be identified

on Effective Tariff Sheet No. 6B.

(Continued)