Gas OII Parties

Per our discussion at the April 10 meeting to discuss draft tariffs to
implement the PG&E Gas OII settlement, PG&E is providing the following
materials:

* Revised Gas OII and PG&E Tariff Preparation Schedule.  The testimony
and hearing schedule adopted at the April 11 prehearing conference is now
included, along with revised dates for the tariff approval process for
PG&E's settlement.  Please remember that much of this schedule is
speculative - and highly dependent on the actual timing of Commission
actions and presumes we can achieve broad consensus on tariff language. For
PG&E's settlement tariffs, we have delayed our providing a next draft until
May 25.  We need the extra time to address the issues raised at the April 10
meeting, and to further explore our internal process requirements.  We
therefore delayed our next tariff meeting until June 27, which should be
after hearings and opening briefs on SoCal matters.  If the litigation
schedule changes, we may need to revisit our tariff preparation schedule.

* List of Issues.  This list is compiled from the April 10 meeting,
plus the April 6 CPAG meeting.  As we work through these issues, we may be
contacting individual parties to further discuss the issue before we send
out our next tariff draft.  Please let us know if you have comments or
additions to this list.

* Exhibit A to Attachment K to the CTA Request Form, proposed CTA bill
format.  A draft of this proposed bill format Exhibit has been completed
since we sent out the last package. The attached table is for your
information on the source of various elements to be included in the bill
format, and would not be part of the final Exhibit.  If you have questions
or comments on this Exhibit, please include Cathy Bretz on your E-mail
(clbe@pge.com) or call her at 415-973-3140.

* Core Rate Impacts of CTA Storage Unbundling.  An illustration of the
expected rate impacts of this program was completed since we sent out the
last package.  This illustration was presented at the CPAG and Tariff Review
meetings. If you have questions or comments on this attachment, please
include Jerry Miller on your E-mail (grm8@pge.com) or call him at
415-973-4104.

We also continue to welcome comments or concerns you may have on the draft
tariffs for our Comprehensive Gas OII Settlement.  We will try to respond to
them in our next draft tariff package, to be sent May 25.

Thanks to those parties who attended the April 10 meeting and provided
excellent comments and suggestions.

Sincerely,


Randy Litteneker


Attachments

 <<OII + Tariff Schedule w6.doc>>     <<April 10 GasOII Wrkshp Issues_.doc>>
 <<EXHIBIT A of ATTACHMENT K Sample Consolidated Bill Items cb2.doc>>
<<Illustrative Rates_CTA unbundling.doc>>

 - OII + Tariff Schedule w6.doc
 - April 10 GasOII Wrkshp Issues_.doc
 - EXHIBIT A of ATTACHMENT K Sample Consolidated Bill Items cb2.doc
 - Illustrative Rates_CTA unbundling.doc