Pacific Gas Transmission Company

First Revised Volume No. 1-A

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Effective Date: 06/01/2001, Docket: RP01-400-000, Status: Effective

Second Revised Sheet No. 14A Second Revised Sheet No. 14A : Effective

Superseding: First Revised Sheet No. 14A

RATE SCHEDULE FTS-1

FIRM TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.6 Shipper shall pay the Maximum Reservation Charge, and the

Maximum Delivery Charge for service under this Rate Schedule

unless PG&E GT-NW offers to discount the Mileage Rate

components or the Non-Mileage Rate components of the

Reservation Rate or the Delivery Rate or the GRI surcharge

under this rate schedule. If PG&E GT-NW elects to discount

any such rate, PG&E GT-NW shall, up to forty-eight (48) hours

prior to such discount, by written notice, advise Shipper of

the effective date of such charges and the quantity of gas so

affected; provided, however, such discount shall not be

anticompetitive or unduly discriminatory between individual

shippers. The rates for service under this rate schedule

shall not be discounted below the Minimum Reservation Charge,

the Minimum Delivery Rate, and applicable ACA Surcharge.

(Continued)