Pacific Gas Transmission Company

First Revised Volume No. 1-A

Effective Date: 03/01/1999, Docket: RP99-207-000, Status: Effective

Fourth Revised Sheet No. 55 Fourth Revised Sheet No. 55 : Effective

Superseding: Third Revised Sheet No. 55

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

2. GAS RESEARCH INSTITUTE CHARGE ADJUSTMENT PROVISION

2.1 Purpose: PG&E GT-NW has joined with other gas enterprises in the

formation of, and participation in, the activities and

financing of the Gas Research Institute (GRI), an Illinois Not

For Profit corporation. GRI has been organized for the purpose

of sponsoring Research, Development and Demonstration (RD&D)

programs in the field of natural and manufactured gas for the

purpose of assisting all segments of the gas industry in

providing adequate, reliable, safe, economic and

environmentally acceptable gas service for the benefit of gas

consumers and the general public.

For the purpose of funding GRI's approved expenditures, this

Paragraph 2 establishes a GRI Adjustment Charge to be

applicable to PG&E GT-NW's Rate Schedules ITS-1, AIS-1, PS-1

and FTS-1 in this FERC Gas Tariff First Revised Volume No. 1-A;

provided, however, such charge shall not be applicable in the

event gas is delivered to a downstream interstate pipeline that

is a member of GRI.

2.2 Basis for the GRI Adjustment Charges: The rate schedule

specified in Paragraph 2.1 hereof shall include an increment

for a GRI Adjustment Charge for RD&D. Such GRI Adjustment

Charge shall be that increment, adjusted to PG&E GT-NW's

pressure base and heating value if required, which has been

approved by Federal Energy Regulatory Commission Orders approving

GRI's RD&D expenditures. The GRI Adjustment Charge shall be

reflected in the current Statement of Effective Rates and

Charges for Transportation of Natural Gas in this FERC Gas

Tariff First Revised Volume No. 1-A.

2.3 Filing Procedure: The notice period and proposed effective

date of filings pursuant to this paragraph shall be as

permitted under Section 4 of the Natural Gas Act; provided,

however, that any such filing shall not become effective

unless it becomes effective without suspension or refund

obligation.

2.4 Remittance to GRI: PG&E GT-NW shall remit to GRI, not later

than fifteen (15) days after the receipt thereof, all monies

received by virtue of the GRI Adjustment Charge or the

Check the Box procedure, less any amounts properly payable to

a Federal, State or Local authority relating to the monies

received hereunder.

(Continued)