CONFIDENTIAL SETTLEMENT DOCUMENT
   PER CPUC RULE 51

ALL PARTIES:

Based on feedback from a number of parties, we have decided to postpone next
week's Gas Accord II Workshop.  The Workshops previously scheduled for
January 10-11, 2001, and January 24-25, 2001, will not be held.

We tentatively plan on holding the next Workshops on February 7-8, and
February 21-22, 2001.  We request that you pencil in these dates on your
calendars.  We will confirm these dates later, hopefully by next week, once
we learn the procedural schedule for the ongoing Rate Stabilization hearings
before the CPUC.

The Gas Accord II Workshop on February 7-8 (tentative dates) will be
informational in nature, and will focus on reviewing and explaining PG&E's
comprehensive Gas Accord II Settlement Proposal, which was distributed by
e-mail on December 21, 2000.  We then propose to use the following Workshop,
scheduled for February 21-22 (tentative dates), to receive specific feedback
from parties, and engage in detailed, substantive discussions.

Attached below is a revised schedule for suggested workshop dates and
timing, beginning with the tentative February 7-8 Informational Workshop.

We continue to believe that PG&E must be in a position file an application
with the Commission - either a settlement or PG&E's litigation case - no
later than the middle of this calendar year.  The mid-year filing date is
necessary in order to allow sufficient time for the Commission to consider
the issues and render a decision, and for PG&E to implement the decision by
December 31, 2002, which is the date the current Gas Accord, OFO and Gas OII
settlements effectively end.

Between now and the upcoming February Workshops, we encourage Parties to
continue to review the December 21 Settlement Proposal, and to contact us
with any questions and concerns.  PG&E representatives also will be
available to meet with Parties individually, or in small groups, to go over
the Settlement Proposal in detail, prior to the February Workshops.  The
purpose of such smaller sessions will not be to negotiate any details, but
only to explain the PG&E Settlement Proposal, and respond to questions.
Please feel free to contact either of us, and we can make the necessary
arrangements for such a meeting.

We appreciate all the input various parties have provided regarding the
scheduling issues, and we hope this revised schedule is responsive to your
concerns.


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

 <<Gas Accord II Settlement Schedule.doc>>


 - Gas Accord II Settlement Schedule.doc