SAN FRANCISCO, CA -- PG&E Corporation announced today that it has been awarded the 2003 National Freedom Award by the U.S. Department of Defense's Employer Support of the Guard and Reserve (ESGR). The award is given annually to employers who demonstrate exceptional support of employee members of the Guard and Reserve. PG&E Corporation is the winner of the western regional Freedom Award, joining four other winners representing other parts of the country.

"This award is an honor for our company and a tribute to the men and women who volunteer to put their lives on the line through their service in our armed forces," said PG&E Corporation Chairman, CEO and President Robert D. Glynn, Jr. "We continue to be grateful for their extraordinary commitment and actions and look forward to the safe return of all of our deployed reservists and their comrades."

The ESGR selected PG&E Corporation for the National Freedom Award in light of the Corporation's historic support of Guard Members and Reservists throughout the last century and the steadfast commitment the company shows today.

In World War I, 606 -- more than 10 percent of Pacific Gas and Electric Company's employees - served in the military or in the Red Cross. In World War II, one-sixth of the utility's men and women served in the armed forces, a total of 2,700 in all. The company made and kept the promise to re-hire all of its returning citizen soldiers.

The Corporation's support of its employee Guard Members and Reservists members continues to this day through its policies and strong commitment at the highest levels of the company. After the tragedies of September 11, 2001, PG&E Corporation activated an emergency military leave policy so that Guard Members and Reservists deployed after that date would receive the difference between military pay and regular salary, along with the full range of benefits for themselves and their dependents. Based on the status of current U.S. military operations and workforce need, PG&E Corporation has kept the policy in effect ever since.

Eighteen PG&E Corporation employees are presently on active duty with orders to support military and peacekeeping operations around the world. Reservists include front-line soldiers such as U.S. Air Force Master Sergeant Richard Stockand, currently mobilized under operation Enduring Freedom. "I have personally operated in several theaters, for long hours, under adverse conditions, knowing that my employer is taking care of my personal needs," said Master Sergeant Stockand. "Without that support, the volunteer spirit would diminish. I can only say that personnel programs like the ones offered by PG&E Corporation have made several military operations successful."

Mr. Glynn and PG&E reservists will accept the 2003 National Freedom Award on November 14, 2003, in Washington, D.C., at the ESGR award ceremony.

The ESGR is an agency within the Office of the Assistant Secretary of Defense for Reserve Affairs. It was established in 1972 to promote cooperation and understanding between reservists and their civilian employers and to assist in the resolution of conflicts arising from an employee's military commitment. Regional Employer Support Freedom Awards are selected annually by an Awards Board of nearly 100 ESGR members.