EDITORS: Please do not use "Pacific Gas and Electric" or "PG&E" when referring to PG&E Corporation or its National Energy Group. The PG&E National Energy Group is not the same company as Pacific Gas and Electric Company, the utility, and is not regulated by the California Public Utilities Commission. Customers of Pacific Gas and Electric Company do not have to buy products or services from the National Energy Group in order to continue to receive quality regulated services from Pacific Gas and Electric Company.

PG&E CORPORATION TELLS CALIFORNIA STATE SENATE ITS UNITS HAD NO BUSINESS RELATIONSHIP WITH PEROT SYSTEMS

(San Francisco, CA) - PG&E Corporation (NYSE: PCG) reported today that its business units, Pacific Gas and Electric Company and the PG&E National Energy Group (PG&E NEG), have informed the California State Senate that they did not have any contracts or other business relationships with Perot Systems Corporation.

The California State Senate's Select Committee to Investigate Price Manipulation of the Wholesale Energy Market asked California's investor-owned electric utilities and other energy providers to indicate any business relationships and contacts with Perot Systems. Last week, Pacific Gas and Electric Company and the PG&E NEG provided responses to the Committee's earlier inquiry relating to trading practices. In that response, both companies told the committee that they did not engage in any Enron-style trading strategies.

The Corporation is pleased to continue its cooperation with the California State Senate's investigation and hopes that this will assist in restoring confidence in the energy markets as speculation is replaced by fact.

Copies of Pacific Gas and Electric Company's and PG&E NEG's responses to the California State Senate, relevant documents and press releases are available for viewing at www.pge-corp.com