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PG&E's Response to California Senate

PACIFIC GAS AND ELECTRIC COMPANY PROVIDES ADDITIONAL INFORMATION TO SENATE COMMITTEE SHOWING THAT IT DID NOT HAVE BUSINESS RELATIONSHIPS WITH PEROT SYSTEMS

SAN FRANCISCO - Pacific Gas and Electric Company today provided additional information to the California State Senate Select Committee to Investigate Price Manipulation of the Wholesale Energy Market to further demonstrate that it did not have any contracts or other business relationships with Perot Systems.

The Committee asked California's investor-owned electric utilities and other energy providers to indicate any business relationships and contacts with Perot Systems. Yesterday, Pacific Gas and Electric Company told the Committee that it did not have any business relationships with Perot Systems.

In its letter today, the utility provided additional information on a marketing letter sent by Policy Assessment Corporation. The documents indicate that Policy Assessment Corporation may have been connected to, or related to, Perot Systems. The documents further indicate that Policy Assessment Corporation sought to make, and may have made, a presentation that may have been attended by one or more PG&E employees. Pacific Gas and Electric Company did not hire Policy Assessment Corporation or Perot Systems for any services, including those identified in the marketing letter.

Copies of Pacific Gas and Electric Company's letters to Senator Joseph Dunn, chairman of the Committee, are available on the utility's website at www.pge.com