Pacific Gas Transmission Company

First Revised Volume No. 1-A

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Effective Date: 10/30/1999, Docket: RP99-518-000, Status: Effective

Third Revised Sheet No. 41 Third Revised Sheet No. 41 : Effective

Superseding: Second Revised Sheet No. 41

RATE SCHEDULE AIS-1

AUTHORIZED IMBALANCE SERVICE

(Continued)

3. RATES

Shipper shall pay PG&E GT-NW, each month, for services provided under

Rate Schedule AIS-1. The maximum and minimum rate(s) set forth under

Rate Schedule AIS-1 in PG&E GT-NW's current Statement of Effective

Rates and Charges for Transportation of Natural Gas are applicable to

Authorized Imbalance Service rendered hereunder.

The monthly charges for Authorized Imbalance Service shall be the

product of the quantities of gas advanced to Shipper's Authorized

Imbalance Account and the maximum AIS-1 rate as set forth in the

current Statement of Effective Rates and Charges for Transportation

of Natural Gas (unless PG&E GT-NW elects to discount this rate) for

each day that Shipper has not returned the advanced gas to PG&E GT-NW.

If PG&E GT-NW, upon nomination by Shipper, fails to schedule quantities

of gas for return to PG&E GT-NW within the planned redelivery schedule,

PG&E GT-NW and Shipper will agree to a revised redelivery schedule.

Additionally, PG&E GT-NW will suspend the AIS-1 rate charges for the

quantity of gas nominated but not scheduled for as long as the

interruption or curtailment is in effect.

3.1 NEGOTIATED RATES

Notwithstanding any provision of PG&E GT-NW’s Tariff to the contrary,

PG&E GT-NW and Shipper may mutually agree in writing to a Negotiated

Rate (including a Negotiated Rate Formula) with respect to the rates,

rate components, charges, or credits that are otherwise prescribed,

required, established, or imposed by this Rate Schedule or by any

other applicable provision of PG&E GT-NW’s Tariff.

Such Negotiated Rate shall be set forth in Attachment B to the AIS

Transportation Service Agreement and PG&E GT-NW shall make any filings

with the Commission necessary to effectuate such Negotiated Rate.