PRESS RELEASES 2002 RELEASE
FOR IMMEDIATE RELEASE
May 22, 2002
Contact: News Department (415) 973-5930
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PACIFIC GAS AND ELECTRIC COMPANY CONFIRMS TO FERC: IT DID NOT ENGAGE IN ENRON-LIKE TRADING STRATEGIES

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.


 

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