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 ISSUES STATEMENT AFTER STATE AND SOUTHERN CALIFORNIA EDISON REACH AN AGREEMENT

San Francisco, CA -- Pacific Gas and Electric Company today issued the following statement after the State and Southern California Edison reached an agreement:

"We are pleased that Southern California Edison, given its set of facts, and the State have been able to reach an agreement and are hopeful that this agreement will contribute to the solution of the State's energy crisis.

"Given our set of facts, we continue to believe that a Chapter 11 reorganization is the most feasible means to reach a solution.

"We will proceed at the direction of the bankruptcy court."