PRESS RELEASES 2001 RELEASE
 
FOR IMMEDIATE RELEASE
March 30, 2001
Contact: Greg S. Pruett
 
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 ISSUES 8K

(San Francisco, CA)- PG&E Corporation (NYSE: PCG) today filed an 8K with the Securities and Exchange Commission that highlights the following issues:

  • Recent regulatory actions taken by the California Public Utilities Commission in connection with the California energy crisis, and the potential impact of these actions on the financial position of PG&E Corporation and its unit, Pacific Gas and Electric Company.

  • An update on the liquidity and financial position of Pacific Gas and Electric Company.

  • Recognition that, absent a regulatory or legislative solution that provides for full recovery of the undercollected wholesale power costs incurred since June 1, 2000, the Utility's and Corporation's financial results for the fourth quarter and the fiscal year ended December 31, 2000 would include a charge of approximately $6.9 billion ($4.1 billion after tax), reflecting a write-off of the TRA and TCBA as of December 31, 2000. Further, the Utility does not have authority to recover any power purchase costs it incurs during 2001 in excess of revenues from retail rates. Such amounts also would be charged against earnings absent a regulatory or legislative solution that provides for full recovery of such costs. For financial reporting purposes only, this would result in a material decline in reported common stockholders' equity, potentially below zero for the utility during the first quarter of 2001, assuming the ISO continues to charge the Utility for the amount of the Utility's net open position not met through the Department of Water Resources purchases.

A copy of the Corporation's 8K is available for viewing at PG&E Corporation's website www.pgecorp.com or at www.freeedgar.com.