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 NATIONAL ENERGY GROUP TELLS FERC NO NATURAL GAS SELL/BUYBACK TRADES

BETHESDA, Md. - PG&E Corporation's (NYSE: PCG) PG&E National Energy Group told federal regulators Wednesday that it has not engaged in "sell/buyback" natural gas trades.

PG&E National Energy Group reviewed its natural gas trading transactions during 2000 and 2001 in response to an inquiry from the Federal Energy Regulatory Commission, which issued a request for information on gas trading practices for the Western United States and Texas.

The FERC requested information involving the sale of natural gas together with a simultaneous purchase of the same product at the same price with the same counter party. The company's review found no such transaction responsive to the FERC request.

PG&E National Energy Group, based in Bethesda, Md., develops, builds, owns and operates power production and national gas transmission facilities and provides a broad range of energy trading, marketing and risk management services in North America.