April 19, 2000
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.


(Boston, MA) - PG&E Corporation (NYSE:PCG) had a strong 1999 and is poised to deliver superior value to shareholders for the future. This was the theme delivered during the Corporation's 2000 Annual Meeting held in Boston earlier today.

PG&E Corporation Chairman, CEO, and President Robert D. Glynn, Jr. cited several key accomplishments during his speech to shareholders including:

  • Earnings per share from operations increased 15 percent in 1999 to $2.24 per share on top of 12 percent growth in 1998.

  • Net income from operations grew by 11 percent, driven by the strong performance of Pacific Gas and Electric Company and the PG&E National Energy Group.

  • The PG&E National Energy Group increased its earnings per share from operations by 42 percent over 1998 performance.

  • Pacific Gas and Electric Company increased earnings from operations per share from operations by 14 percent.

Glynn also highlighted a number of projects underway:

  • PG&E Corporation continued construction on the Millennium Power Project in Charlton, MA a 360-megawatt natural gas-fueled plant, scheduled for operation in the fourth quarter of 2000.

  • In Connecticut, the Corporation broke ground on the Lake Road Generating Plant, a 792-megawatt natural gas-fueled plant, scheduled for operation in 2001.

  • In New York last week, with Energy Secretary Bill Richardson, the Corporation broke ground for the Madison Windpower Project - which will be the largest wind generating facility in the Eastern United States.

  • In California, we started construction of the 1,048-megawatt natural gas-fueled La Paloma Generating Plant, also scheduled for operation in 2001.

  • Last week, the Corporation announced that it was joining with 11 other energy companies to build what will be the country's largest fiber optic telecommunications network.

  • And the Corporation joined a consortium of 15 energy companies to establish a new Internet-based business-to-business platform for buyers and sellers of goods and services.

Glynn told shareholders that PG&E Corporation is committed to delivering 8 to 10 percent annual earnings per share growth going forward. He also noted that the Corporation plans to generate 30 percent or more of these earnings from its National Energy Group by 2002.

"When achieving these targets is firmly in sight," said Glynn. "We will raise the bar higher. We will execute and we will continue to grow and shareholder value is our metric."

For a Full text of Bob Glynn's speech to PG&E Corporation shareholders please visit PG&E Corporation's website at

PG&E Corporation, with 1999 revenues of almost $21 billion and operations in 21 states, markets energy services and products throughout North America through its National Energy Group. 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.

This presentation contains forward-looking statements regarding the future performance of the Corporation. These statements are subject to certain risks and uncertainties that could cause actual results to differ materially. Some of the factors that could cause actual results to differ materially include: the pace and extent of the ongoing restructuring of the electric and natural gas industries across the United States; future conditions in the energy markets; the extent to which current or planned generation development projects are completed and the pace and cost of such completion; generating capacity expansion and retirements by others; the Corporation's ability to successfully manage fluctuations in commodity gas and electricity prices; the method and timing of disposition and valuation of the Utility's hydroelectric generation assets; the timing of the completion of the Utility's transition cost recovery and the consequent end of the current electric rate freeze in California; the pace and extent of competition in the California generation market and its impact on the Utility's costs and resulting collection of transition costs; future operating performance of the Diablo Canyon Nuclear Power Plant; and other factors discussed in reports filed with the Securities and Exchange Commission by the Corporation and Pacific Gas and Electric Company.