Confidential Settlement Document
  CPUC Rule 51

ALL PARTIES:

Thanks to the many parties who attended our Gas Accord II kick-off meeting
on September 14.  We thought it was a good start toward a collaborative
settlement process.  This e-mail summarizes the next steps identified at the
meeting.

First, the list of the issues identified by the parties is being sent by a
separate e-mail transmittal today to those parties who have agreed to abide
by Rule 51.  We are continuing to assemble the issues list, and would like
any more issues that parties wish to raise sent to us by this Friday,
September 22.  This is not to limit issues, but rather to build our workshop
presentations and discussions, and ultimately our settlement proposal.  If
you are not on the Rule 51 list and wish to be added, please complete the
Mailing List Information form below.  Also attached is a copy of CPUC Rule
51.

Second, attached is an updated schedule for the Gas Accord II workshops.
Please note, the November workshop has been moved to November 7-8 (which is
Tuesday and Wednesday), instead of the week following as we had originally
proposed.  We request that you please hold the attached dates on your
calendars if you plan to be active in the settlement discussions.

Based on the issues list, we suggest the following topics for the first
three workshops:

* September 27:  Reliability, for both facilities and supply.
* October 11-12:  Market, cost and rate data.
* November 8-9:  Market operations, including core issues, balancing,
open season rules, and information disclosure.

Please let us know if this workshop plan does not work for you.

Third, PG&E will provide a basic set of market data and preliminary cost
data to all of the Rule 51 parties in advance of the October 11-12 Workshop.
This will help parties to identify and analyze their issues.  After seeing
this data, to the extent there are other information requests, please send
them to Frank Lindh (e-mail to frl3@pge.com or Fax to 415-973-5520).

Again thank you for your participation in the Gas Accord II Settlement
Process.  We look forward to our upcoming workshops and discussions.  Please
feel free to call us if you have questions.

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

Attachments

 <<Mailing List Information>>  <<CPUC Rule 51>>  <<Gas Accord II Settlement
Schedule>>


 - Mailing List Information.doc
 - CPUC Rule 51.doc
 - Gas Accord II Settlement Schedule.doc