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. 39 Third Revised Sheet No. 39 : Effective

Superseding: Second Revised Sheet No. 39

RATE SCHEDULE AIS-1

AUTHORIZED IMBALANCE SERVICE

1. AVAILABILITY

This rate schedule is available to any party (hereinafter called

"Shipper") qualifying for service pursuant to the Commission's

regulations contained in 18 CFR Part 284, and who has executed an

Authorized Imbalance Service Agreement with PG&E GT-NW in the form

contained in this FERC Gas Tariff First Revised Volume No. 1-A.

2. APPLICABILITY AND CHARACTER OF SERVICE

2.1 This rate schedule shall apply to Authorized Imbalance

Service performed by PG&E GT-NW. This service is interruptible

in nature.

2.2 PG&E GT-NW will authorize AIS-1 service for any Shipper only if,

within PG&E GT-NW's best operating judgement and discretion,

such service is not otherwise expected to prevent PG&E GT-NW

from meeting all of its firm and interruptible service

obligations, including PG&E GT-NW's system needs. In the event

that service has already commenced and PG&E GT-NW learns that

the continued furnishing of service may prevent PG&E GT-NW from

meeting all of its firm and interruptible service obligations

then PG&E GT-NW may, at its sole discretion and upon giving

appropriate notice to Shipper(s), interrupt the continuation of

any or all of the services hereunder.

2.3 PG&E GT-NW shall establish and maintain an Authorized Imbalance

Account for Shipper utilizing this service.

2.4 Service hereunder shall consist of the advancement (loan) to

Shipper upon nomination and subsequent confirmation of such

daily quantities of gas, up to Shipper's Maximum Quantity

(MQ) as specified in the executed Authorized Imbalance

Service Agreement between PG&E GT-NW and Shipper. Quantities

of gas advanced to Shipper shall be debited to Shipper's

Authorized Imbalance Account. Shipper and PG&E GT-NW, at the

time such advances are confirmed, will agree to a redelivery

(return of loaned gas) schedule setting out the daily

quantities of gas Shipper will deliver to PG&E GT-NW and the

point at which gas will be delivered to PG&E GT-NW to reduce

Shipper's Authorized Imbalance to zero.

(Continued)