PG&E Settlement Draft Pro Forma Tariffs

Hi Jeff,

Tim Hamilton asked me to give you my thoughts about the above mentioned
tariff.

1) SCHEDULE G-CFS-CORE FIRM STORAGE (page 1 of 1)

* How will PG&E implement the storage charge - will they retro this to April
2000?
* Is the storage rate applicable to our monthly storage inventory or monthly
storage capacity?
Our monthly storage inventory is about 300,000 dth and monthly storage
capactity is about 4,000 dth.
300,00dth X $0.10 = $30,000/month
4,000 dth X $0.10 = $400/month

2) RULE 14 - CAPACITY ALLOCATION AND CONSTRAINT OF NATURAL GAS SERVICE (page
11 of 18)
OFO NONCOMPLIANCE CHARGE EXEMPTION:

* The $1,000 per month exemption gives the small guy the right to be
non-compliant.

3) SCHEDULE G-BAL-GAS BALANCING SERVICE FOR INTRASTATE TRANSPORTATION
CUSTOMERS (page 7 of 11)
SELF BALANCING OPTION:

* The Self-Balancing credit of $0.005/dth is a good concept but we could not
take advantage of that because our usage fluctuates too much from day to
day.