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.
STARTS FOR NORTH BAJA PIPELINE PROJECT
SAN FRANCISCO and SAN DIEGO,
June 19, 2000 - PG&E Corporation's National Energy Group and Sempra
Energy International today launched an open season to solicit market
interest in capacity on the proposed 212-mile North Baja Pipeline
The companies announced
last week that they were joining with Mexico's Próxima Gas, S.A.
de C.V. to build the project, which will begin at an interconnection
with El Paso Natural Gas Co. near Ehrenberg, Ariz., traverse southeastern
California and northern Baja California, Mexico, and terminate at
an interconnection with the Rosarito Pipeline south of Tijuana.
The PG&E National Energy
Group will direct development of the 77-mile U.S. segment of the
pipeline, while Sempra Energy International and Próxima Gas will
direct development of the 135-mile Mexico segment. The project is
projected to be in service as early as January 2003.
In the open season beginning
today, prospective shippers will have an opportunity to subscribe
for capacity on the pipeline. Non-binding requests for service must
be submitted no later than July 14, 2000. Results of the open season
will be tabulated and the potential shippers contacted regarding
project specifics by July 21, 2000. The companies will seek binding
precedent agreements by the end of September.
In its initial design, the
pipeline is projected to have capacity to transport 400,000 decatherms
of natural gas per day. The project calls for 30-inch pipe, with
one compressor station in Arizona.
"The North Baja Pipeline
Project is intended primarily to serve electric generation needs
in northern Mexico, as well as industrial and local distribution
company load along the Mexico leg," said Peter Lund, vice president,
pipeline development and marketing, for the PG&E National Energy
Group. "However, we will consider viable requests for service from
delivery points all along the route."
"Given the high energy demand
growth in northern Baja California, there is potential for a strong
market response," said George Liparidis, regional president and
general manager, North American operations, for Sempra Energy International.
"To the extent the market indicates an interest in capacity beyond
our initial scope, we will consider expanding capacity by increasing
compression on the Mexico side."
Potential customers interested
in participating in the open season should contact Henry Morse at
the PG&E National Energy Group (503-833-4108) or Ryan O'Neal at
Sempra Energy International (619-696-4585) to receive a bid package.
PG&E Corporation, with revenues
of more than $20 billion and operations in 21 states, markets energy
services and products throughout North America through its National
Energy Group. One of the largest U.S. transporters of Canadian natural
gas, the Corporation owns and operates a 612-mile dual pipeline
system in the Pacific Northwest. PG&E Corporation's businesses also
include Pacific Gas and Electric Company, the Northern and Central
California business that delivers natural gas and electricity to
one in every 20 Americans.
Próxima Gas S.A. de C.V.
is a private Mexican company that develops and invests in infrastructure
projects of great economic impact in Northern Mexico.
Sempra Energy International
develops, operates and owns energy projects. The company currently
is involved in joint or solo ventures that provide natural gas and
electricity services to more than 2.5 million customers in Argentina,
Canada, Chile, Mexico, Peru, the United States and Uruguay. Sempra
Energy International is a subsidiary of Sempra Energy, a Fortune
500 energy services holding company based in San Diego, Calif.,
with 12,000 employees, revenues of nearly $5.5 billion and more
than 9 million customers in the United States, Europe, Canada, Mexico
and South America.