
	Nine Months		Cumulative		Future
	Ended		Charges		Charges
		September 30,		September 30,	and		Total
(in millions)	2016		2016		Costs		Amount
Fine paid to the state	$	-	$	300	$	-	$	300
Customer bill credit paid		-		400		-		400
Charge for disallowed capital (1)		286		692		-		692
Disallowed revenue for pipeline safety
expenses (2)		8		8		150		158
CPUC estimated cost of other remedies (3)		-		-		-		50
Total Penalty Decision fines and remedies	$	294	$	1,400	$	150	$	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 finalize in a final phase two decision to be issued in the Utility’s 2015 GT&S rate case. The CPUC recommended in its May 5, 2016 phase one proposed decision in the Utility’s 2015 GT&S rate case that at least $692 million of the $850 million cost disallowance be allocated to capital expenditures. On November 1, 2016, the CPUC issued a phase two proposed decision in the 2015 GT&S rate case which allocates $689 million to capital expenditures.

(2) 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. This table does not reflect the Utility’s remedy-related costs already incurred nor the Utility’s estimated future remedy-related costs. These costs would be expensed as incurred.