CONFIDENTIAL SETTLEMENT DOCUMENT
  PER CPUC RULE 51

Parties --

As we committed in an e-mail transmittal last Friday regarding the upcoming
"Gas Accord II" negotiations for PG&E's California Gas Transmission System
for the period commencing January 1, 2003, we are attaching below, for your
infomation, copies of the following three prior settlements, all of which
bear upon the issues the Parties will be discussing:

* Gas Accord Settlement Agreement, dated August 31, 1996
* Operational Flow Order (OFO) Agreement, dated October 20, 1999
* Gas OII Settlement Agreement, dated January 28, 2000

Also, this will serve as a reminder to you that PG&E is hosting a kick-off
meeting for Settlement Negotiations for Gas Accord II, this THURSDAY,
SEPTEMBER 14, from 9:30 AM until 3:30 PM, at PG&E headquarters in San
Francisco, in Conference Room A, 245 Market Street (on the ground floor).
Please note, the meeting will NOT be held at the PG&E Energy Center as first
announced.

This also will serve as a reminder to please provide us with your own
preliminary list of issues by midday, tomorrow, Wednesday, September 13.  We
will compile all the identified issues into a single list and distribute
them at the meeting on Thursday, as a first step in building a working
issues list.

We hope to see you Thursday!

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


 <<Gas Accord>>  <<Gas Accord Rate Tables>>
 <<ofo.doc>>  <<Gas OII Settlement Agreement January 28.doc>>

 - Gas Accord.doc
 - Gas Accord Rate Tables.doc
 - ofo.doc
 - Gas OII Settlement Agreement January 28.doc