Pacific Gas Transmission Company

First Revised Volume No. 1-A

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Effective Date: 07/01/2001, Docket: RP01-427-000, Status: Effective

Seventh Revised Sheet No. 90 Seventh Revised Sheet No. 90 : Superseded

Superseding: Sixth Revised Sheet No. 90

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

28. CAPACITY RELEASE (Continued)

28.2 Types of Release

A Releasing Shipper may release a Parcel for a term (Release

Term) up to or equivalent to the remaining term under its

service agreement with PG&E GT-NW. Types of releases include:

NON-PREARRANGED - BIDDING REQUIRED

(1) Greater than or equal to one day, is not prearranged and

requires bidding.

PREARRANGED RELEASES - BIDDING REQUIRED

(1) Greater than or equal to one day and less than three

hundred and sixty-five days. This type of release is

prearranged, requires bidding, has no rate cap on

allowable bids and allows for the right of first refusal.

Bidding is pursuant to the methodology selected by the

Releasing Shipper.

(2) Greater than or equal to three hundred and sixty-five

days at a rate less than the maximum applicable tariff

rate. This type of release is prearranged, allows for

bidding up to the maximum applicable tariff rate and

allows for the right of first refusal. Bidding is

pursuant to the methodology selected by the Releasing

Shipper.

PREARRANGED RELEASES - BIDDING NOT REQUIRED

(1) Less than or equal to thirty-one days. This type of

release is prearranged and does not require bidding.

This release cannot be rolled-over, renewed or otherwise

extended beyond the term described above unless the

Releasing Shipper follows the posting and bidding

procedures that apply to the particular term sought

contained in this Paragraph 28. The Releasing Shipper

may not re-release this Parcel to the same Replacement

Shipper until 28 days after the term of the initial

release has ended.

(2) Greater than or equal to three hundred and sixty-five

days at the maximum applicable tariff rate. This type

of release is prearranged and does not require bidding.

(Continued)