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 RESPONDS TO FERC: IT DID NOT ENGAGE IN WASH
SAN FRANCISCO - Pacific
Gas and Electric Company today informed the Federal Energy Regulatory
Commission (FERC) that it did not engage in wash, roundtrip or sell/buyback
electric trades in the Western United States markets.
The filing was in response
to the Commission's request for information about trading activities
from more than 100 companies who sold power in the Western U.S.
markets in 2000 and 2001.
In its response, Pacific
Gas and Electric Company told FERC that as part of the state's retail
electric industry restructuring, the utility was required by the
California Public Utilities Commission (CPUC) to bid all of its
generation into the California Power Exchange (PX) and California
Independent System Operator (CAISO) and to purchase through the
PX and CAISO all of the electric energy required to serve its retail
customers (the so-called buy/sell requirement). In August 2000,
the CPUC modified the "buy" requirement to permit PG&E to make some
energy purchases through bilateral markets. All power purchased
by Pacific Gas and Electric Company under the resulting bilateral
contracts was used to meet retail load and was not resold in the
On December 15, 2000, FERC
ordered the elimination of the "sell" requirement, allowing the
utility to use its own resources to serve directly its own load,
rather than having to sell those resources to the CAISO and PX.
After this order, Pacific Gas and Electric Company exclusively used
its generation resources for service to its own retail loads or
to provide necessary ancillary services to the CAISO.
At no time during this two-year
period did Pacific Gas and Electric Company use its generation resources
to engage in "wash," "round trip" or "sell/buyback" trading.
Pacific Gas and Electric
Company's response to FERC is available at www.pge.com.