Pacific Gas Transmission Company

First Revised Volume No. 1-A

Effective Date: 07/01/2002, Docket: RP02-272-000, Status: Effective

Seventh Revised Sheet No. 110 Seventh Revised Sheet No. 110 : Effective

Superseding: Sixth Revised Sheet No. 110

TRANSPORTATION GENERAL TERMS AND CONDITIONS

28. CAPACITY RELEASE (Continued)

28.10 Crediting, Billing Adjustments and Refunds (Continued)

Should Replacement shipper default on payment to

PG&E GT-NW of the reservation charge (or equivalent

volumetric rate) PG&E GT-NW shall bill Releasing

Shipper for such unpaid charges and apply interest

to such adjustments in accordance with the

provisions of Paragraph 8 of the Transportation

General Terms and Conditions.

(d) Excess Revenue Credits

Releasing Shipper is entitled to excess revenue credits

resulting when the reservation charge (or equivalent

volumetric rate) revenues actually received by PG&E GT-NW

from the Replacement Shipper(s) exceed the reservation

charge (or equivalent volumetric rate) revenues which

would have been received by PG&E GT-NW from the Releasing

Shipper if capacity was not released.

(e) Refunds

PG&E GT-NW shall track all changes in its rates approved

by the Commission. In the event the Commission orders

refunds of any such rates charged by PG&E GT-NW and

previously approved, PG&E GT-NW shall make corresponding

refunds to all affected Shippers including Shippers

receiving capacity release service

In such instances when rates to Replacement Shippers are

reduced, PG&E GT-NW shall make corresponding adjustments

to the crediting of revenues to Releasing Shippers for

the period such refunds are payable.

28.11 Adoption of GISB Capacity Release Standards

The following GISB Standards are adopted by, and clarify,

the capacity release provisions set forth in this

Section 28. Unless otherwise specified, all standards are

Version 1.4:

5.3.1, 5.3.4; 5.3.5; 5.3.9; 5.3.11; 5.3.12; 5.3.16; and

5.3.19.

(Continued)