Pacific Gas Transmission Company

First Revised Volume No. 1-A

Effective Date: 04/01/1999, Docket: RP99-248-000, Status: Effective

Fourth Revised Sheet No. 16B Fourth Revised Sheet No. 16B : Effective

Superseding: Third Revised Sheet No. 16B

RATE SCHEDULE FTS-1

FIRM TRANSPORTATION SERVICE (Continued)

3.12 Reservation Charge Credit - Other than Malin Primary Delivery Point

If PG&E GT-NW fails to deliver Forward-haul service on a Primary

Path to a primary delivery point on its system other than Malin,

Oregon, ninety-five percent (95%) or more of the aggregate

Confirmed Daily Nominations (as hereinafter defined) of all

Shippers at such primary delivery point other than Malin receiving

service under this rate schedule (hereinafter referred to as the

"Non-Deficiency Amount") for more than twenty-five (25) days in

any given Contract Year, then for each day during that Contract

Year in excess of twenty-five (25) days that PG&E GT-NW so fails

to deliver the Non-Deficiency Amount (a "Credit Day") Shipper, as

its sole remedy, shall be entitled to a Reservation Charge Credit

calculated in the manner hereinafter set forth.

For the purpose of this Paragraph 3.12, Confirmed Daily

Nomination shall mean for any day, the lesser of (1) Shipper's

Maximum Daily Quantity or (2) the quantity of gas that the

connecting downstream pipeline(s), local distribution company

pipeline(s), or end-user(s) is/are capable of accepting for

Shipper's account at Shipper's point(s) of primary delivery on

PG&E GT-NW or (3) the quantity of gas that the connecting pipeline

upstream of PG&E GT-NW is capable of delivering to PG&E GT-NW for

Shipper's account to PG&E GT-NW at Shipper's primary point of

receipt(s) on PG&E GT-NW less Shipper's requirement to provide

compressor fuel and line losses under the Statement of Effective

Rates and Charges of PG&E GT-NW's FERC Gas Tariff, First Revised

Volume No. 1-A or (4) Shipper's nomination to PG&E GT-NW.

The Reservation Charge Credit for each Credit Day for a

particular Shipper shall be computed as follows:

Reservation Charge A B - C

Credit for Each ____ x _____

Credit Day = (30.4 ) ( B )

where A = Shipper's Monthly Reservation Charge

B = Shipper's confirmed daily nomination for the

Credit Day

C = Actual quantity of gas delivered by PG&E GT-NW to a

Shipper's primary delivery point(s) (other than

Malin) for Shipper's account for the Credit Day

Except as provided for in Paragraph 3.10 of this rate schedule

this Reservation Charge Credit is Shipper's sole remedy for

nondelivery of gas by PG&E GT-NW.

(Continued)