March 22, Advice No U-904-G. Public Utilities Commission of the State of California. Subject: Submission of Long-Term Storage Contract

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1 Lee Schavrien Director Regulatory Case Management and Tariff Administration 101 Ash Street San Diego, CA March 22, 2001 Tel: Pager: Fax: U-904-G Public Utilities Commission of the State of California Subject: Submission of Long-Term Storage Contract Southern California Gas Company (SoCalGas) hereby submits for filing with the California Public Utilities Commission (Commission) the attached long-term storage contract SoCalGas has executed with the following customer: Recot, Inc. DBA Frito-Lay, Inc This filing is made in compliance with Section 9.4 and Ordering Paragraph 14 of Decision No. (D.) , dated February 3, 1993 in A /I Information Under the Contract, SoCalGas will provide Recot, Inc. DBA Frito-Lay, Inc. storage services for a term of 5 years and six months (5.5 contract years) effective May 1, The Contract is fixed-price with a provision for escalation of the Contract s reservation charges. Other key features of the contract are as follows: Storage Services Firm Inventory: Firm Withdrawal: Firm Injection: 55,000 Decatherms 5,500 Decatherms/Day 1,833 Decatherms/Day Contract Services All of the annual inventory, firm injection, and firm withdrawal services subscribed under the Contract shall be provided by SoCalGas through existing storage facilities. The customer has not elected the Drive Gas option under SoCalGas' long-term storage program.

2 - 2 - March 22, 2001 Reservation Charges In accordance with the provisions of Finding of Fact No. 45 of D , any overor under-collections resulting from fixed-price contracts shall be the responsibility of SoCalGas shareholders. The reservation charges under the Contract are initially set equal to the current rates in SoCalGas' Schedule No. G-LTS. The reservation charges are as follows: Annual Inventory Firm Withdrawal Firm Injection $0.214 per decatherm $ per decatherm per day $ per decatherm per day (every day of the month reserved) Beginning on April 1, 2002, and for each April 1 thereafter, the injection, withdrawal, and inventory reservation charges for the Contract Year shall be adjusted based on the percentage difference between the Consumer Price Index - All Urban Consumers (CPI) for September, as published by the Bureau of Labor Statistics in December of the calendar year immediately preceding such April, and the September CPI published in December for the previous calendar year. Effective Date It is respectfully requested that this advice letter and the Contract filed herein be approved and become effective on May 1, 2001, which is not less than forty (40) days regular statutory notice. Protests Anyone may protest this advice letter to the California Public Utilities Commission. The protest must state the grounds upon which it is based, including such items as financial and service impact, and should be submitted expeditiously. The protest must be made in writing and received within 20 days of the date this advice letter was filed with the Commission. There is no restriction on who may file a protest. The address for mailing or delivering a protest to the Commission is: IMC Branch Program Manager Energy Division California Public Utilities Commission 505 Van Ness Avenue, Room 4002 San Francisco, CA A copy should also be mailed to the attention of Energy Division-IMC Branch, Room 4005 (at the address shown above). It is also requested that a copy of the protest be sent via electronic mail and facsimile to SoCalGas on the same date it is mailed or delivered to the Commission (at the addresses shown below).

3 - 3 - March 22, 2001 Service List Attn: Sid Newsom Regulatory Tariff Administration - GT14D6 555 West Fifth Street Los Angeles, CA Facsimile No. (213) snewsom@sempra.com Attn: C. Richard Swanson Regulatory Tariff Manager - HQ14C 101 Ash Street San Diego, CA Facsimile No. (619) rswanson@sempra.com In accordance with Section III.G of General Order No. 96-A, a copy of this advice letter is being sent to the parties listed on Attachment A. Copies of the Agreement referenced herein have been provided to the Commission Staff. Other parties may request a copy of this Agreement by contacting (213) Attachments LEE SCHAVRIEN Director -- Regulatory Case Management and Tariff Administration

4 ATTACHMENT A General Order 96-A Distribution List Burbank Public Service Department California Manufacturers Association City of Anaheim Public Utilities Department City of Azusa Light and Power Department City of Banning Municipal Utilities City of Lompoc City of Los Angeles City of Riverside, Public Utilities Department City of Vernon, Director, Water & Power Department Colton Bureau of Light & Water General Services Administration, San Francisco General Services Administration, Washington D.C. Glendale Public Service Department Imperial Irrigation District Long Beach Gas Department Los Angeles Department of Water and Power March Air Force Base Naval Facilities Engineering Command, Western Division Pacific Gas and Electric Company Pasadena Water and Power Department San Diego Gas & Electric Company Southern California Edison Company Southwest Gas Corporation The Utility Reform Network Vandenberg Air Force Base

5 ATTACHMENT B GAS STORAGE AGREEMENT Recot, Inc. DBA Frito-Lay, Inc.