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 Says CPUC
Amended Order Provides Breathing Room To Allow Governor And Legislature
To Address Problem
(San Francisco, CA)- PG&E
today commended the California Public Utilities Commission for recognizing
the severity of the electricity price crisis facing California's
consumers by adopting an amended final decision that: (1) increases
retail electric rates; (2) addresses recovery of previously incurred
costs by removing inappropriate language from the proposed decision;
and (3) identifies the need for the securitization as a mechanism
to deal with undercollection of wholesale energy costs.
"This action by the CPUC
should give us breathing room to allow the Governor and the Legislature
to address the problem," said Robert D. Glynn, Jr., Chairman, CEO
and President of PG&E Corporation.
"This is the most substantive
action we have seen in months on this crisis," he said. "Initial
reaction by the financial markets to this modified order has been
"Although this decision
does not yet solve the problem," Mr. Glynn said, "it is an important
first step. Most importantly, the tone, as well as the content of
the order, should provide adequate assurance to our lenders and
suppliers that a solution to the problem is in the making and that
they should continue to work with us while this solution is being
Mr. Glynn noted that the
Commission removed some, but not all of the retroactive accounting
changes designed to artificially extend the rate freeze. "While
we are still troubled by aspects of the decision that are not consistent
with the law, we are encouraged that the Commission will finally
hold hearings on the end of the rate freeze issue."
Mr. Glynn added that now
it is up to the Governor and the Legislature who have indicated
that they are poised to address this serious problem, "and we have
every confidence that they will take appropriate action," he said.
"I am guardedly optimistic that rational minds will prevail."