Pacific Gas Transmission Company

First Revised Volume No. 1-A

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

Second Revised Sheet No. 16 Second Revised Sheet No. 16 : Effective

Superseding: First Revised Sheet No. 16

RATE SCHEDULE FTS-1

FIRM TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.10 Capacity Release

(a) Releasing Shippers:

Shipper shall have the option to release capacity

pursuant to the provisions of PG&E GT-NW's capacity release

program as specified in the Transportation General Terms

and Conditions. Shipper may release its capacity, up to

Shipper's Maximum Daily Quantity under this rate

schedule, in accordance with the provisions of Paragraph

28 of PG&E GT-NW's Transportation General Terms and

conditions of this FERC Gas Tariff, First Revised Volume

No. 1-A. Shipper shall pay a fee associated with the

marketing of capacity by PG&E GT-NW (if applicable) in

accordance with Paragraph 28 of the Transportation General

Terms and Conditions. This fee shall be negotiated between

PG&E GT-NW and the Releasing Shipper.

(b) Replacement Shippers:

Shipper may receive released capacity service under this

rate schedule pursuant to Paragraph 28 of the

Transportation General Terms and Conditions and is

required to execute a service agreement in the form

contained for capacity release under Rate Schedule FTS-1

in this First Revised Volume No. 1-A.

Shipper shall pay PG&E GT-NW each month for transportation

service under this rate schedule and as set forth in

PG&E GT-NW's current Statement of Effective Rates and

Charges in this First Revised Volume No. 1-A. Charges to

be paid shall be the sum of the Reservation Charge, Delivery

Charge, and other applicable surcharges or penalties.

The rates paid by Shipper receiving capacity release

transportation service shall be adjusted as provided on

Exhibit R in the executed Transportation Service

Agreement For Capacity Release between PG&E GT-NW and

Shipper.

(Continued)