
	Nine Months		Cumulative		Future
	Ended		Charges		Charges		Total
		September 30,		September 30,	and
(in millions)	2015		2015		Costs		Amount
Fine payable to the state (1)	$	100	$	300	$	-	$	300
Customer bill credit		400		400		-		400
Charge for disallowed capital (2)		270		270		419		689
Disallowed revenue for pipeline safety
expenses (3)		-		-		161		161
CPUC estimated cost of other remedies (4)		-		20		30		50
Total Penalty Decision fines and remedies	$	770	$	990	$	610	$	1,600

(1) In March 2015, the Utility increased its accrual from $200 million at December 31, 2014 to $300 million.

(2) The Penalty Decision prohibits the Utility from recovering certain expenses and capital spending associated with pipeline safety-related projects and programs that the CPUC will identify in the final decision to be issued in the Utility’s 2015 GT&S rate case. The Utility estimates that approximately $142 million and $270 million of capital spending (which include less than $1 million for remedy related capital costs)in the three months and nine months ended September 30, 2015, respectively, are probable of disallowance, subject to adjustment based on the final 2015 GT&S rate case decision.

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

(4) In the Penalty Decision, the CPUC estimated that the Utility would incur $50 million to comply with the remedies specified in the Penalty Decision, including approximately $30 million for the cost of future audits to be conducted by the SED. The amounts shown in the table above represent these estimated amounts and do not reflect the Utility’s remedy-related costs already incurred nor the Utility’s estimated future remedy-related costs. The Utility has submitted testimony in its 2017 GRC request to remove additional remedy-related costs of approximately $61 million.