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 NEG's Response to California Senate

PG&E NATIONAL ENERGY GROUP TELLS CALIFORNIA STATE SENATE COMMITTEE NO BUSINESS RELATIONSHIPS WITH PEROT SYSTEMS

BETHESDA, Md. - PG&E National Energy Group, a unit of PG&E Corporation (NYSE: PCG), today reported to the California State Senate's Select Committee to Investigate Price Manipulation of the Wholesale Energy Market that it did not engage Perot Systems on issues involving that state's markets and has no business relationships with the company.

PG&E National Energy Group's review of documents found no evidence of any business with Perot Systems. In 1997, Policy Assessment Corporation, allegedly working with Perot Systems, attempted to market services related to the California energy market. No PG&E National Energy Group entity hired Policy Assessment Corporation or Perot Systems for any of the services marketed.

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