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.

PG&E ISSUES STATEMENT ON FEDERAL COURT CASE

San Francisco, CA -- Pacific Gas and Electric Company today issued the following statement on its federal court case:

"Upon initial review, it appears the court rejected the arguments the California Public Utilities Commission made to dismiss our federal lawsuit, except on the issue of 'ripeness.' The court determined that our lawsuit was premature because the CPUC had not yet finalized its various decisions on PG&E's request for recovery of its costs to purchase wholesale power.

"The court said that we may re-file the lawsuit once the CPUC decisions become final. Today's action allows us to continue to pursue the merits of the case on a timely basis."