Pacific Gas Transmission Company

First Revised Volume No. 1-A

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Effective Date: 10/30/1999, Docket: RP99-518-002, Status: Effective

Substitute Third Revised Sheet No. 128 Substitute Third Revised Sheet No. 128 : Effective

Superseding: Second Revised Sheet No. 128

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

31. NEGOTIATED RATES (Continued)

31.2 Filing requirement. Unless PG&E GT-NW executes and files a

non-conforming agreement, PG&E GT-NW will submit to the Commission

on or before the commencement of service under a Negoitiated Rate

Contract a tariff sheet stating the exact legal name of the

Shipper, Negotiated Rate, the rate schedule, the receipt and

delivery points, the contract quantities and, where applicable,

the Negotiated Rate Formula underlying a Negotiated Rate for any

Negotiated Rate Agreement. The filing will contain a provision

that the Negotiated Rate Agreement does not deviate any material

respect from the Form of Agreement in the tariff for the

applicable rate schedule.

31.3 Rate Treatment. PG&E GT-NW shall have the right to seek in future

general rate proceedings discount-type adjustments in the design

of its rates related to Negotiated Rate Agreements that were

converted from pre-existing discount Agreements to Negotiated

Rate Agreements. In those situations, PG&E GT-NW may seek a

discount-type adjustment based upon the greater of: (a) the

Negotiated Rate revenue received; or (b) the discounted tariff

rate revenues which otherwise would have been received.

31.4 Limitations. This Paragraph 31 does not authorize PG&E GT-NW to

negotiate terms and conditions of service.

31.5 Capacity Release. Negotiated Rates do not apply as the price cap

for capacity release transactions. Further, capacity release bids

must conform to PG&E GT-NW's applicable tariff rates, as further

described in Section 28.6(b)(4) of these Transportation General

Terms and Conditions.

31.6 Accounting Treatment. PG&E GT-NW shall maintain separate records

for all revenues associated with Negotiated Rate transactions.

Transactions related to Negotiated Rate Agreements which

originated as a pre-existing discounted service and were

subsequently converted will be recorded separately from those

originating as Negotiated Rate Agreements. PG&E GT-NW shall

record each volume transported, billing determinants, rate

component, surcharge, and the revenue associated with its

Negotiated Rates so that this information can be filed,

separately identified, and separately totaled, as part of and

in the format of Statements G, I, and J in PG&E GT-NW's next

general rate change application.

(Continued)