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. 32 Third Revised Sheet No. 32 : Effective

Superseding: Second Revised Sheet No. 32

RATE SCHEDULE ITS-1

INTERRUPTIBLE TRANSPORTATION SERVICE

(Continued)

3. RATES (Continued)

3.1 Interruptible Transportation Charge

The monthly Interruptible Transportation Charge shall be the

sum of the Mileage Component and Non-Mileage Component.

(a) Mileage Component

The Mileage Component shall be the product of the

currently effective Mileage Rate as set forth on the

Effective Tariff Sheet No. 4, the distance, in

pipeline miles, from the Primary Point(s) of Receipt

to the Primary Point(s) of Delivery, and the

qantities of gas delivered at such point(s) during

the month (Dth).

(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 quantities of

gas delivered during the month (Dth) at point(s) of

delivery on Mainline Facilities for immediate

delivery to the facilities of another entity or to

an Extension Facility.

3.2 Extension Charge

If Shipper designates a point(s) of delivery on an Extension

Facility, then, in addition to all other charges that are

applicable, Shipper shall pay the Extension Charge, which

shall be the product of the quantities delivered at the

point(s) of delivery on the Extension Facility, the

applicable Extension Delivery Rate as set forth on effective

tariff Sheet No. 4, and the distance, in pipeline miles,

from the point(s) of receipt(s) on the Extension Facility to

the point(s) of delivery.

3.3 Applicability of Surcharges

Shipper shall pay all surcharges applicable to the service

provided to Shipper as set forth in PG&E GT-NW's FERC Gas

Tariff, First Revised Volume No. 1-A. Such surcharges shall be

deemed to be part of Shipper's Delivery Charge.

(Continued)