August 10, 2000
Contact: Sandra McDonough PG&E National Energy Group (503) 833-4601 e-mail:, or Steve Becker, Avista Corp., (509) 495-4264, e-mail:
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.


SAN FRANCISCO, CALIF., AND SPOKANE, WASH. - PG&E Corporation (NYSE: PCG) and Avista Corp. (NYSE: AVA) continue to make progress on Stanfield Hub Services, LLC, their joint venture natural gas storage project in eastern Washington. The companies, partners on this project since early 1999, said they will continue to move forward in light of encouraging initial test results and a positive regulatory ruling from the Federal Energy Regulatory Commission (FERC).

"The need for natural gas continues to grow in the region," said Peter Lund, vice president, pipeline marketing and development, of PG&E National Energy Group's Northwest system. "A viable natural gas storage facility accessible to both Northwest and California markets would play a vital role in helping to meet this need."

The project's next steps will include deepening an existing well and conducting additional tests to determine the viability of the proposed storage site. The tests are expected to last about 90 days, and subsequent activities will depend on their results.

The Stanfield Storage Project is located in eastern Washington across the Columbia River from Stanfield, Ore. It is strategically close to PG&E National Energy Group's pipeline interconnect with Williams (Northwest Pipeline Corp.), several existing and proposed major power plant developments, and regional electric transmission facilities. The project developers say this location is emerging as a regional energy hub, making it ideal for a natural gas storage area.

"The Stanfield gas storage project shows great promise for our company, our customers and the region, and we are moving ahead with it," said Roger Woodworth, Avista Corp. vice president of corporate development, "but we will only seek final regulatory approvals if the Stanfield project is determined to be fully feasible."

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, PG&E National Energy Group 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 utility that deliver natural gas and electricity to one in every 20 Americans. For more information about PG&E Corporation, visit its website at

Avista Corp. is an energy, information and technology company with utility and subsidiary operations located throughout North America. Avista Corp. affiliate companies include Avista Utilities, which operates the company's electric and natural gas generation, transmission, and distribution business. Avista's non-regulated businesses include Avista Advantage, Avista Labs, Avista Communications, Avista Energy, Avista Energy Canada, Ltd., Avista Power and Avista Ventures, the parent of Avista Development and Pentzer Corporation. For more information about Avista Corp., visit the corporate website at .

This news release contains forward-looking statements regarding the Avista Corp.'s current expectations. These statements are subject to a variety of risks and uncertainties that could cause actual results to differ materially from the expectations. These risks and uncertainties include, in addition to those discussed herein, all of the factors discussed in the company's Annual Report on Form 10-K for the year ended Dec. 31, 1999, and Form 10-Q for the quarter ended March 31, 2000.