Pacific Gas Transmission Company

First Revised Volume No. 1-A

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Effective Date: 03/27/2002, Docket: RP02-164-000, Status: Effective

Third Revised Sheet No. 96 Third Revised Sheet No. 96 : Effective

Superseding: Second Revised Sheet No. 96

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

28. CAPACITY RELEASE (Continued)

28.6 Bidding for a Parcel

(a) Preliminary Qualification

Replacement Shippers are encouraged to pre-qualify in

advance of any postings on PG&E GT-NW's EBB as credit

requirements will take differing amounts of time to

process depending on the particular financial profile

of Replacement Shippers. The pre-qualification process

will authorize a pre-set maximum monthly financial

exposure level for the Replacement Shipper. Such

exposure levels may be adjusted by PG&E GT-NW

periodically re-evaluating a Replacement Shipper's

credit-worthiness.

Releasing Shippers may exercise their option to waive

the credit requirements for any Replacement Shipper

wishing to bid on a Parcel posted by that Releasing

Shipper. Such waiver must be made on a nondiscriminatory

basis. PG&E GT-NW must be informed of such waiver via

the EBB before it will authorize such Replacement

Shipper's participation with respect to that particular

Parcel. In this instance, no pre-set maximum monthly

financial exposure level is applicable.

Should a Releasing Shipper waive the credit requirements

for a Replacement Shipper, the Releasing Shipper shall

be liable for all charges incurred by the Replacement

Shipper in the event such Replacement Shipper defaults

on payment to PG&E GT-NW for such capacity release

service.

(Continued)