Gas OII Settlement Parties:

This morning, the CPUC approved the Comprehensive PG&E Settlement Agreement,
resolving all issues concerning PG&E in the Gas Strategy Investigation.
Thanks to all of you for your part in making this settlement possible.

The next step is getting the tariffs approved.  PG&E sent out a first draft
of the tariffs on March 28, 2000, and then held a tariff workshop on April
10, 2000.  We will send out a revised draft next week, on the 25th, which
will take into account suggestions many of you made on the prior draft.  We
will then hold half-day tariff workshop on Tuesday, June 13th.  We must file
the tariffs with the CPUC by July 17, 2000.  A detailed schedule for
completion of these tariffs is attached.

 <<OII Tariff Schedule for Parties_.doc>>

Thanks again for your efforts in negotiating this settlement, and we look
forward to completing the tariffs together with you.

Ron Stoner     Randy Litteneker
(415) 973-3606    (415) 973-2179

 - OII Tariff Schedule for Parties_.doc