Confidential Settlement Document Under CPUC Rule 51

PARTIES:

This is a reminder that we have a Gas Accord II Settlement Workshop next
week on Wednesday and Thursday, October 25 and 26.  The workshop on
Wednesday will start at 9:30 a.m. and end around 3:30 p.m.  We will provide
lunch this day.  On Thursday, we would like to start at 9:00 a.m. and end
around noon.  The Workshop is at PG&E's headquarters, Conference Room 300,
77 Beale Street, San Francisco.

Please respond, to let us know whether you will attend next week's workshop,
so that we can get a head-count for lunch on Wednesday.   Please RSVP to
Darcy Morrison at D2mr@pge.com, or by telephone at (415) 973-6644.

Attached below is our proposed agenda.  The topics include:  balancing,
transaction information, open-season rules, PG&E core procurement, and core
aggregation.

Also on the Wednesday agenda, we have set aside some time for a feedback
discussion with you.  We are looking for your thoughts on the material we
have presented in the Workshops to-date, topics for our final Workshop on
November 7 and 8, issues you may wish to have addressed at that workshop,
and any process suggestions.

Looking ahead, our initial thinking for the November 7 and 8 Workshop
includes the following topics:
* A more comprehensive supply/demand/pipeline capacity forecast and
the implications on facility needs, including under cold weather conditions.
* Further explanation of the Supply Reliability options discussed at
the September 27 Workshop.
* More detail on the Capital Expenditure forecasts.
* Additional analysis of the Direct Connect to Backbone and Local
Transmission rate design options.
* Continue the feedback discussion.

Please be reminded that we would like everyone involved in the Gas Accord II
Settlement to fill out our information form, including initials indicating
agreement to abide by CPUC Rule 51.  If you have not previously provided us
with a form, please fill out the attached blank form and return it by e-mail
to Geoff Bellenger at gjb2@pge.com, or send it by FAX to 415-973-0881.

We look forward to seeing you at next week's Workshop.  Please call or
E-mail us if you have any questions or suggestions.

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

Attachments

 <<Agenda 10-25&26-00 Workshop.doc>>  <<Gas Accord II Information Form.doc>>
 <<CPUC Rule 51.doc>>

 - Agenda 10-25&26-00 Workshop.doc
 - Gas Accord II Information Form.doc
 - CPUC Rule 51.doc