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.
ACQUIRES MERCHANT GENERATION FACILITY IN MISSISSIPPI
Bethesda, Md. -- PG&E Corporation's
(NYSE: PCG) National Energy Group today announced that it has agreed
to acquire Duke Energy North America's 500-megawatt merchant generation
Attala Energy Facility. The acquisition is expected to be completed
at the end of September following regulatory approval.
"This purchase fits into
our overall strategic growth plan," said Chris Iribe, president
and chief operating officer of the National Energy Group's Eastern
Region. "It strengthens our growing supply position in the Southern
United States. Our innovative financing plan for the Attala facility
allows us to achieve capital velocity by using our resources in
an effective, and efficient manner that provides the greatest shareholder
Attala is a combined cycle,
natural gas-fired merchant generation facility located in central
Mississippi. It will utilize General Electric 7FA combustion turbines.
Construction of the facility began last March and commercial operation
is scheduled for the summer of 2001. The plant will deliver into
the Entergy wholesale market.
"This purchase makes us
an early and well-positioned entrant into the region's power market,"
said Greg Kelly, vice president of marketing and business development
of the National Energy Group's Eastern Region. "There is a critical
need for additional electricity across the country. With creative
projects like Attala that integrate our marketing and generation
units, we provide faster, better, and smarter solutions for our
customers," he added.
"The project will be financed
with an innovative structure to maintain control of operations and
output, while minimizing the need for PG&E equity capital," said
John Cooper, chief financial officer of the PG&E National Energy
"We recognize the importance
of being reliable, flexible, and fast. By being first to market
we are helping to define excellence in energy and that benefits
customers and shareholders alike," said Iribe.
PG&E Corporation with 1999
revenues of nearly $21 billion and operations in 21 states, markets
energy services and products throughout North America through its
National Energy Group. The Corporation has ownership and management
interests in more than 30 power plants and has one of the largest
energy trading and risk management programs in North America.