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.
ANNOUNCES EXPANSION OF MID-ATLANTIC PORTFOLIO THROUGH MERCHANT TOLLING
AGREEMENT WITH COLUMBIA ELECTRIC CORPORATION
Bethesda, Md. -- PG&E Corporation's
(NYSE: PCG) National Energy Group today announced a 14 1/2 -year
tolling agreement with Liberty Electric Power, LLC (Liberty), a
wholly owned subsidiary of Columbia Electric Corporation. The arrangement
complements the five-plant portfolio PG&E National Energy Group
currently controls in the mid-Atlantic power market. Under the terms
of the agreement, PG&E National Energy Group has contracted with
Liberty for long-term capacity rights at Liberty's 530-megawatt
natural gas-fueled combined-cycle Liberty Electric Power Project,
located in southeast suburban Philadelphia.
"This transaction allows
us to utilize our skills to complement Columbia Electric's needs
and leverage our strong position in the mid-Atlantic region. This
contributes to the establishment of images/news/newsal Energy Group
as one of the fastest growing spark spread managers in North America,"
said Lyn Maddox, president and COO of the National Energy Group's
Peter Greenberg, PG&E National
Energy Group vice president of marketing & business development,
Eastern region added, "The agreement strengthens our regional asset
base -- complementing the Company's existing plants and our fleet
of power generation projects in development -- and adds to the diversity
of our fuel mix. Our accomplishments in the mid-Atlantic region
made us an attractive partner and we look forward to a successful
relationship with Columbia Electric."
Columbia Electric Corporation's
Vice President of Energy Management, Ed Jarmas, said, "PG&E National
Energy Group's experience marketing generation in the mid-Atlantic
region, and Columbia Electric's expertise in developing large-scale
independent power projects made this a natural fit. This is a win-win
for both companies."
Columbia Electric Corporation,
a subsidiary of Columbia Energy Group, is an unregulated electric
generation company whose primary focus is the development, ownership,
and operation of clean natural gas fueled power plants.
Columbia Energy Group, based
in Herndon, Va., is one of the nation's leading energy services
companies, with assets of approximately $7 billion. Its operating
companies engage in nearly all phases of the natural gas business,
including exploration and production, transmission, storage and
distribution, as well as retail energy marketing, propane and petroleum
product sales, and electric power generation.
PG&E Corporation with 1999
revenues of nearly $21 billion and operations in 21 states, markets
energy services and products throughout North America through its
National Energy Group, newly headquartered in Bethesda, Md. The
Corporation has ownership and management interests in images/news/news0
power plants and has one of the largest energy trading and risk
management programs in North America.