Pacific Gas Transmission Company

First Revised Volume No. 1-A

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

Second Revised Sheet No. 55A Second Revised Sheet No. 55A : Effective

Superseding: First Revised Sheet No. 55A

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

2. GAS RESEARCH INSTITUTE CHARGE ADJUSTMENT PROVISION (Continued)

2.5 A high load factor Shipper is a Shipper with a load factor

greater than fifty (50) percent. A low load factor Shipper is

a Shipper with a load factor equal to or less than fifty (50)

percent. A Shipper's load factor for each service agreement

shall be determined annually using the most recent twelve (12)

months of actual throughput available (including throughput

using capacity released pursuant to Paragraph 28 of the

Transportation General Terms and Conditions). The Shipper's

load factor shall remain in effect during the calendar year.

In the event twelve (12) months of actual data does not exist,

the Shipper's load factor shall be determined monthly based on

the latest recorded throughput data. The appropriate GRI demand

surcharge is applied monthly until such time as twelve (12) months

of actual data is accumulated. At such time the Shipper's load

factor shall remain in effect during the calendar year.

2.6 For the purpose of funding GRI's approved expenditures, and

subject to the further terms and conditions set forth in the

Stipulation and Agreement Concerning the Post-1993 GRI Funding

Mechanism and the orders approving such Stipulation and

Agreement found at Gas Research Institute, 62 FERC ¶61,316

(1993) this Paragraph 2 establishes a GRI Funding Unit which

shall be collected for quantities of gas transported under

PG&E GT-NW's rate schedules provided, however, such charge

shall not be applicable to discounted transactions except where

the discounted rate is less than the GRI Funding Unit. In this

instance PG&E GT-NW shall remit that portion of the GRI Funding

Unit actually collected. For purposes of discounted

transactions, any GRI Funding Unit shall be considered to be

the first component of rates discounted. The GRI Funding Unit

may be discounted to zero and shall not be applied to the same

quantity of gas more than once.

2.7 Voluntary GRI Contributions. PG&E GT-NW has agreed to be a

collection agent for shippers that voluntarily choose to support

GRI through a "check the box" procedure on PG&E GT-NW's invoices.

Amounts collected will be remitted to GRI in accordance with the

requirements of Section 2.4 of this FERC Gas Tariff. The amounts

collected pursuant to this procedure will not be part of PG&E

GT-NW's rates.

(Continued)