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.
(San Francisco, CA)- PG&E
Corporation (NYSE: PCG) today filed an 8K with the Securities and
Exchange Commission that highlights the following issues:
Recent regulatory actions
taken by the California Public Utilities Commission in connection
with the California energy crisis, and the potential impact
of these actions on the financial position of PG&E Corporation
and its unit, Pacific Gas and Electric Company.
An update on the liquidity
and financial position of Pacific Gas and Electric Company.
Recognition that, absent
a regulatory or legislative solution that provides for full
recovery of the undercollected wholesale power costs incurred
since June 1, 2000, the Utility's and Corporation's financial
results for the fourth quarter and the fiscal year ended December
31, 2000 would include a charge of approximately $6.9 billion
($4.1 billion after tax), reflecting a write-off of the TRA
and TCBA as of December 31, 2000. Further, the Utility does
not have authority to recover any power purchase costs it incurs
during 2001 in excess of revenues from retail rates. Such amounts
also would be charged against earnings absent a regulatory or
legislative solution that provides for full recovery of such
costs. For financial reporting purposes only, this would result
in a material decline in reported common stockholders' equity,
potentially below zero for the utility during the first quarter
of 2001, assuming the ISO continues to charge the Utility for
the amount of the Utility's net open position not met through
the Department of Water Resources purchases.
A copy of the Corporation's
8K is available for viewing at PG&E Corporation's website www.pgecorp.com
or at www.freeedgar.com.