Another FERC related PRESS RELEASE

FOR IMMEDIATE RELEASE November 1, 2000
CONTACT: PG&E News Department (415) 973-5930 77 Beale Street, San Francisco
CA 94105

Pacific Gas and Electric Company Welcomes FERC Report
San Francisco - Pacific Gas and Electric Company issued the following
statement on the report issued by the Federal Energy Regulatory Commission
(FERC) today:
"Pacific Gas and Electric Company is pleased that FERC has used its authority
to give California many of the tools we need to fix the wholesale electricity
markets in this state. We agree with Chairman Hoecker and other FERC
commissioners that this report is a sound beginning to the process of
repairing the marketplace, but that more actions will need to be taken, at
both the state and federal level, before the goal of a working, competitive
energy market can be realized in California.
"The new bid framework the Commission ordered represents a creative attempt
to fix the market and moderate prices, while still allowing competition to
evolve. Our hope is that this new framework will be successful in moderating
electricity prices.
"While the report does not find evidence of market power abuse in California
this summer, FERC does provide for potential refunds, should abuse be
discovered, effective as of the beginning of October 2000.
"We are very pleased with the opportunity the Commission has given us to
review and comment upon this report, and look forward to providing our
comments on November 9, and throughout this proceeding."
The FERC action comes one day after Pacific Gas and Electric Company made an
unprecedented $790 million payment to the Power Exchange for wholesale
electricity costs for the single month of August 2000.
"The wholesale electric market in California is clearly broken," said Gordon
R. Smith, president and chief executive officer of Pacific Gas and Electric
Company. "We cannot continue to borrow money to pay excessive wholesale power
prices, which will hit our customers sooner or later. We welcome thoughtful
intervention to repair the market."
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