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.
AND ELECTRIC COMPANY CONFIRMS TO FERC: IT DID NOT ENGAGE IN ENRON-LIKE
Utility Worked to Protect
Customers From Market Abuses
SAN FRANCISCO - Pacific
Gas and Electric Company today informed the Federal Energy Regulatory
Commission (FERC) that it did not engage in Enron trading strategies
now under investigation by the Commission as part of its fact finding
review of the California energy market during 2000 and 2001.
FERC has requested information
about trading activities from more than 150 companies who sold power
in the California market in 2000 and 2001. FERC made its request
due to revelations contained in internal Enron memos that described
trading strategies used by the company during 2000 and 2001 in the
California wholesale electricity markets.
In its response, Pacific
Gas and Electric Company told FERC that as the largest buyer in
the California market, its goal was to minimize costs in the California
Power Exchange (PX) and California Independent System Operator (CAISO)
markets. These costs would ultimately be passed on to California
energy consumers. Pacific Gas and Electric Company has on numerous
occasions disclosed and explained to the CAISO, the FERC, the California
Public Utilities Commission, and other regulatory entities how it
procured power to meet load in the California market.
The utility also noted that
recently filed testimony with the CPUC demonstrates that Pacific
Gas and Electric Company submitted bid curves to the PX designed
to minimize the overall purchase costs in California's market and
protect its customers and shareholders from volatile energy prices.
In its response, the utility also indicated it had attempted to
counteract market abuses in the dysfunctional market, particularly
phantom congestion which had the effect of increasing prices.
Pacific Gas and Electric
Company's response to FERC is available at www.pge.com.