Topock

John Buchanan and I discussed TW's transfer of gas from the PG&E/Topock
receipt/delivery point to the PG&E/Topock Park N' Ride point to implement
TW's use of PG&E's Market Center service. My understanding is that
physically the points are one and the same, and that the transaction will
simply be a paper transfer. Since a contract is required in our system as a
formality to implement the transfer, the rate TW will "charge" itself for the
transfer is $0.

This message is to confirm that I see no legal or regulatory problems with
the above scenario.

If you have any further questions, please do not hesitate to e-mail or call
me (x30596).