
	Three Months		Cumulative		Future
	Ended		Charges		Charges
		March 31,		March 31,	and		Total
(in millions)	2016		2016		Costs		Amount
Fine paid to the state	$	-	$	300	$	-	$	300
Customer bill credit		-		400		-		400
Charge for disallowed capital (1)		87		494		195		689
Disallowed revenue for pipeline safety
expenses (2)		-		-		161		161
CPUC estimated cost of other remedies (3)		-		-		-		50
Total Penalty Decision fines and remedies	$	87	$	1,194	$	356	$	1,600

(1) The Penalty Decision disallows the Utility from recovering $850 million in costs associated with pipeline safety-related projects and programs that the CPUC will identify in a final decision to be issued in the Utility’s 2015 GT&S rate case. The Penalty Decision requires that at least $689 million of the $850 million cost disallowance be allocated to capital expenditures. The Utility estimates that approximately $494 million of cumulative capital spending is probable of disallowance, subject to adjustment based on the final 2015 GT&S rate case decision.

(2) These costs are being expensed as incurred. Future GT&S revenues will be reduced for these unrecovered expenses.

(3) In the Penalty Decision, the CPUC estimated that the Utility would incur $50 million to comply with the remedies specified in the Penalty Decision and does not reflect the Utility’s remedy-related costs already incurred nor the Utility’s estimated future remedy-related costs. These costs are being expensed as incurred.