Pacific Gas Transmission Company

First Revised Volume No. 1-A

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

Fourth Revised Sheet No. 109 Fourth Revised Sheet No. 109 : Effective

Superseding: Third Revised Sheet No. 109

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

28. CAPACITY RELEASE (Continued)

28.10 Crediting, Billing Adjustments and Refunds

(a) Eligibility

PG&E GT-NW shall provide revenue credits to any

Releasing Shipper which releases capacity to a

Replacement Shipper pursuant to the provisions of

Paragraph 28. PG&E GT-NW and Shipper may, in

connection with a Negotiated Rate Agreement

under a firm rate schedule, agree upon payment

obligations and crediting mechanisms in the event

of a capacity release that vary from, or are in

addition to, those set forth in this Section 28.10;

provided, however, that terms and conditions of

service may not be negotiated.

(b) Monthly Crediting Procedure

Revenue credits for released capacity shall be

credited monthly as an offset to a Releasing

Shipper's reservation charge (or the volumetric

equivalent of the reservation charge on a 100%

load-factor basis applicable to the Releasing

Shipper. This shall also be referred to in this

Paragraph 28.9 as the equivalent volumetric rate)

payable to PG&E GT-NW under the applicable rate

schedule for the service that has been released.

PG&E GT-NW shall credit each month to the Releasing

Shipper's account 100% of the revenues from the

charges invoiced to the Replacement Shipper(s) for

the reservation charge (or equivalent volumetric

rate).

PG&E GT-NW shall apply the revenues received from

Replacement Shippers first to the reservation

charge (or equivalent volumetric rate), next to the

GRI reservation surcharge.

(Continued)