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.

PACIFIC GAS AND ELECTRIC COMPANY WILL NOT DECLARE PREFERRED STOCK DIVIDEND

San Francisco, CA) - Citing the severe financial impact of the ongoing California energy crisis, Pacific Gas and Electric Company, the utility unit of PG&E Corporation (NYSE:PCG), announced today that it will not declare preferred stock dividends for the three-month period ending April 30, 2001.

Future preferred stock dividends will not be declared or paid until Pacific Gas and Electric Company's Board of Directors determines that the financial health of the Company will support such action.