CONFIDENTIAL SETTLEMENT MATERIAL
  PER CPUC RULE 51

TO ALL PARTIES:

We appreciate the wide and active participation in the "Gas Accord II"
Workshops to date, and we particularly thank the parties who have taken the
time to identify issues and proposals of concern to them.  The PG&E team is
working hard to put all of this into the context of an initial Gas Accord II
Settlement Proposal.  However, we have concluded that, in order to do the
job properly, we need to delay our target date for circulating a proposal,
until Wednesday, December 20, 2000.

Because of this delay in circulating a proposal, we also are canceling the
proposed all-party meeting scheduled for December 13th and 14th.

Accordingly, the next all-party meeting is the one that we had previously
scheduled to occur on January 10 and 11, 2001.  We will use that meeting to
discuss and explain the PG&E proposal, and to receive feedback from the
parties.

Attached below is the meeting schedule for next year that we outlined
earlier in the process.  We encourage everyone to keep these meeting dates
on your calendars.  We will fill in more details on the specific agendas as
we move forward.

Again, thank you for your participation in the Gas Accord II Settlement
Process.  We look forward to providing you with our initial proposal, and to
our subsequent settlement discussions.

Please feel free to call or e-mail us if you have questions or concerns.

Frank Lindh    Ray Williams
415-973-2776    415-973-3634
frl3@pge.com    rdw0@pge.com

 <<Gas Accord II Settlement Schedule.doc>>

 - Gas Accord II Settlement Schedule.doc