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.
SELECTS BUYER TO PURCHASE RETAIL ENERGY SERVICES COMMODITY PORTFOLIO
(San Francisco, CA)- PG&E
Corporation (NYSE: PCG) today announced that it will sell the stock
of its PG&E Energy Services unit to Enron Energy Services Operations,
Inc., the retail energy services unit of Enron Corporation (NYSE:
ENE), for approximately $85 million, subject for adjustments for
working capital. Through this transaction, Enron will acquire PG&E
Energy Services' retail electric and gas commodities business.
The Corporation received
offers from several parties interested in acquiring all or a portion
of the Company's retail energy services unit. The transaction announced
today will transfer the electric and gas commodities business and
certain related infrastructure assets to Enron. The sale is subject
to regulatory review, including approval from the Federal Energy
Regulatory Commission. It is expected to be complete by the close
of the second quarter of 2000.
PG&E Corporation continues
to review offers from parties interested in acquiring the value-added
services, technical and certain infrastructure assets of its retail
energy services business.
"The announcement of this
transaction, which comes about four months following our decision
to exit the retail energy services business, demonstrates the speed
and intensity with which we are implementing our strategy to grow
financial performance and shareholder value," said Thomas G. Boren,
President and CEO of the PG&E National Energy Group. "This transaction
frees up additional resources that we will redirect to support our
plans to aggressively expand and grow the competitive wholesale
generation, energy commodities trading, and natural gas services
businesses of the National Energy Group."
PG&E Corporation, with 1999
revenues of almost $21 billion and operations in 27 states, markets
energy services and products throughout North America through its
National Energy Group. PG&E Corporation's businesses also include
Pacific Gas and Electric Company, the Northern and Central California
utility that deliver natural gas and electricity to one in every