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Pacific Gas And Electric Company Invites Natural Gas Suppliers And Users To Request Pipeline Capacity

05/30/2001

Pacific Gas and Electric Company today announced an open season for natural gas transmission capacity, inviting suppliers and large commercial and industrial users to submit requests for firm capacity service on the company's pipelines within California.

Demand for natural gas in California continues to grow, and interstate pipeline companies are planning expansions that will increase flows to California from gas producing regions in Canada and the southwestern United States. To meet this demand, Pacific Gas and Electric Company's California Gas Transmission department will offer more than 1.2 billion cubic feet per day of backbone capacity on its Redwood, Baja, and Silverado paths. The paths transport natural gas from Malin, Oregon; Topock, Arizona; and California gas production to the company's local transmission system and other pipelines. The open season will include 200 million cubic feet per day of capacity from an anticipated expansion of the Redwood Path from Malin, Oregon. The expansion is expected to be in service by January 1, 2003.

If Pacific Gas and Electric Company receives requests for service that exceed 1.2 billion cubic feet per day, the company will explore additional expansions. Pacific Gas and Electric Company is fully committed to meeting the existing and expanding needs of its customers. Transportation rates will be based on tariffs approved by the California Public Utilities Commission, which regulates intrastate pipelines.

Pacific Gas and Electric Company's intrastate pipeline system can transport more than 3 billion cubic feet of natural gas per day. Various parties, including the utility's Core Procurement department (which purchases gas on behalf of residential and small business customers), hold firm capacity rights that allow them to transport gas throughout Northern and Central California.

The open season will close July 31, 2001. Complete open season packages will be available June 12, 2001 at www.pge.com/pipeline.

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