EDITORS: Please do not use
"Pacific Gas and Electric" or "PG&E" when
referring to PG&E Corporation or its National Energy Group.
The PG&E National Energy Group is not the same company as Pacific
Gas and Electric Company, the utility, and is not regulated by the
California Public Utilities Commission. Customers of Pacific Gas
and Electric Company do not have to buy products or services from
the National Energy Group in order to continue to receive quality
regulated services from Pacific Gas and Electric Company.
AND ELECTRIC COMPANY FILES SETTLEMENT TO HELP ENSURE STABLE MARKET
FOR NATURAL GAS DELIVERIES
"Gas Accord II" Settlement
Filed With California Public Utilities Commission
SAN FRANCISCO - Pacific
Gas and Electric Company has filed, on behalf of itself and multiple
other parties, a settlement with the California Public Utilities
Commission (CPUC) which, if approved, will extend for one year the
"Gas Accord," a comprehensive set of rules for Pacific Gas and Electric
gas transmission and storage system. The settlement would give gas
suppliers and other Pacific Gas and Electric Company customers the
opportunity to extend existing contracts for firm gas transportation
and storage services, and also would set up an "open season" for
capacity not subscribed through contract extensions. It also would
fix all rates for gas transmission and storage services at existing
This "Gas Accord II" Settlement
has wide support from all sectors of the natural gas and electric
power industries, including representatives of residential ratepayers.
The Settlement will help ensure that ample supplies of competitively-priced
natural gas are in place for the winter heating season. By providing
suppliers the opportunity to continue existing transmission and
storage contracts for a one-year period, the Settlement would also
help stabilize the electric market, since gas is a primary fuel
for electricity generation.
This proposed Gas Accord
II settlement establishes the market structure, rates, and terms
and conditions of service for gas transmission and storage under
the jurisdiction of the California Public Utilities Commission.
The settlement allows for the continuation of transmission contracts
for a one-year period from January 1, 2003, to December 31, 2003,
and storage service from April 1, 2003, to March 31, 2004. The contracts
would remain in place for the one-year time period, or could be
converted to contracts under the jurisdiction of the Federal Energy
Regulatory Commission if Pacific Gas and Electric Company's Bankruptcy
Plan of Reorganization is approved.
In October 2001, Pacific
Gas and Electric Company filed an application with the CPUC, proposing
a two year extension of the Gas Accord, in order to keep in place
the existing market structure and rates pending resolution of Pacific
Gas and Electric Company's bankruptcy case.
The Gas Accord II Settlement
now provides for a one year extension along the line of Pacific
Gas and Electric Company's original proposal, and also establishes
procedures for resolving issues related to the second year, as necessary.
The Gas Accord II Settlement is supported by several groups; including
the Office of Ratepayer Advocates, shippers and large customers.
The settling parties have asked the California Commission to approve
the Settlement on an expedited basis, so that gas supply arrangements
can be in place in time for the upcoming winter season.