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

Fourth Revised Sheet No. 138 Fourth Revised Sheet No. 138 : Effective

Superseding: Third Revised Sheet No. 138




35. Competitive Equalization Surcharge Revenue Credit


(a) Applicability. Competitive Equalization Surcharge ("CES")

revenues received by PG&E GT-NW will be credited to Eligible

Shippers as set forth below.


(b) Eligible Shippers. A Shipper shall be eligible to receive

a credit of CES revenues if it takes service under Rate

Schedule FTS-1, LFS-1, or ITS-1.


(c) Timing of Credits. Within 45 days after November 1st of each year,

PG&E GT-NW shall determine the total amount of the CES revenues

received during the previous 12-month period and the portion of

such amount to be credited to each Eligible Shipper as described

below. Such revenue credits shall be reflected as a credit

billing adjustment on the next bills rendered to the Eligible

Shippers. In the event that such credit billing adjustment would

result in a net credit on the total bill to any Shipper, or in

the event the Eligible Shipper no longer is a shipper on

PG&E GT-NW's system, PG&E GT-NW will pay to such Shipper its share

of the CES revenues within 15 days after determination of the

amount of the credit due to the Shipper.


(d) Allocation Method. CES revenues shall be credited to each

Eligible Shipper based on the proportion of the revenues received

during the 12-month period from each Eligible Shipper for service

rendered under Rate Schedules FTS-1, LFS-1 and ITS-1 (exclusive of

service rendered on the Extensions) divided by the total revenue

received from Eligible Shippers during such period.


(e) Payment of Interest. PG&E GT-NW shall pay interest to Eligible

Shippers on any revenue credits from the date such credits accrue.

Such interest shall be calculated based upon the methodology of

interest specified in Section 154.501(d) of the Commission's