VIII. SUPPORT BY PARTIES

The Parties recognize that it is critical to the public interest and to the stability of the gas and electric industries to have transportation and storage arrangements in place in advance of the 2002-2003 winter heating season. Accordingly, the Parties agree to fully support the adoption of this Settlement, on an expedited basis, by the CPUC, because, among other things, it resolves the pending issues in a manner that is consistent with the public interest.

Attachment A

Open Season Ranking for Baja Path (Illustrative)

Rank		Rate Option	Months	Res. Rate ($/Dth/Month)	Value ($/ Dth)
1		SFV-OFF	12	5.1921	62.3
1		SFV-ON	12	5.1921	62.3
2		MFV-OFF	12	3.9100	46.9
2		MFV-ON	12	3.9100	46.9

Attachment B

Open Season Ranking for Redwood Path (Illustrative)

Rank		Rate Option	Months	Res. Rate ($/Dth/Month)	Value ($/ Dth)
1		SFV-OFF	15	9.8251	147.4
2		SFV-ON	15	7.9610	119.4
3		SFV-OFF	12	9.8251	117.9
4		SFV-ON	12	7.9610	95.5
5		MFV-OFF	15	5.1815	77.7
6		MFV-ON	15	4.6874	70.3
7		MFV-OFF	12	5.1815	62.2
8		MFV-ON	12	4.6874	56.2

Attachment C

Market Concentration Report

For Capacity Holdings As Of January 1, 2003

(Illustrative)

Annual Average Capacity Holdings:

Redwood Path			Baja Path
Shipper 1	XX%		Shipper A	XX%
Shipper 2	XX%		Shipper B	XX%
Shipper 3	XX%		Shipper C	XX%
Shipper 4	XX%		Shipper D	XX%
Shipper 5	XX%		Shipper E	XX%

Path Market Share Percentage equals [(annual average capacity holding by Shipper and affiliates) times (100)] divided by [(annual average path firm capacity) minus (Core and Core Wholesale period average firm capacity holdings) minus (SMUD equity interest)]

Quarterly Average Capacity Holdings:

Redwood Path			Baja Path
Shipper 1	XX%		Shipper A	XX%
Shipper 2	XX%		Shipper B	XX%
Shipper 3	XX%		Shipper C	XX%
Shipper 4	XX%		Shipper D	XX%
Shipper 5	XX%		Shipper E	XX%

Path Market Share Percentage equals [(capacity holding for the quarter by Shipper and affiliates) times (100)] divided by [(path firm capacity for the quarter) minus (Core and Core Wholesale firm capacity holdings for the quarter) minus (SMUD equity interest)]

(END OF APPENDIX A)