CAISO and Utility Companies Issue Urgent Appeal to Reduce Electricity Use; Utilities Directed to Curtail Non-Firm Customers.

News & Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--June 27, 2000

The California Independent System Operator (CAISO) and Pacific Gas and Electric Company are requesting that electric customers throughout California reduce non-essential use of electricity wherever possible today.

The CAISO has declared a Stage 2 electric emergency -- in effect from 1 p.m. to 7 p.m. -- because high temperatures in the Pacific Northwest, Southwest and the rest of the Western United States have limited the amount of electricity that California can import, and caused a drop in the state's electric reserves.

The CAISO has directed all California utilities to contact customers that participate in Non-Firm Service Programs. Pursuant to that request, Pacific Gas and Electric Company will ask customers who participate in its program to curtail their electricity usage between the hours of 2 p.m. and 8 p.m. today. The company's program accounts for a total of 500 MW. Customers who participate in Pacific Gas and Electric Company's Non-Firm Service Program benefit from reduced energy bills in exchange for agreeing to curtail their energy use when the need arises.

The CAISO expects electricity demand in California to surpass 44,000 MW today. The previous record was set on July 12, 1999, when demand reached 45,884 MW. Additionally, a heat wave in the Southwest and Pacific Northwest (Portland is expected to reach 100 degrees) combined with the unavailability of generation in those areas has limited the amount of power California can import. The Pacific Northwest Intertie typically provides approximately 4,000 MW of electricity into California. Today, the amount of imported electricity is expected to be substantially below normal.

To assist the CAISO and ensure the availability of electricity for all Californians, Pacific Gas and Electric Company urges all of its customers -- residential and business -- to take these specific actions now:

      --  Turn air conditioners to 78 degrees or higher.

      --  Stop using electric water heaters, clothes dryers,
        dishwashers, washing machines, ranges and ovens, pool
        equipment, and all lighting except if needed for safety.

      --  Limit irrigation pumping to night and early morning hours.

Under the state's Electrical Emergency Plan, the CAISO declares a Stage 2 electric emergency when the electric reserve margin, or backup generating capacity, drops below five percent but is above 1.5 percent of customer demand.

Pacific Gas and Electric Company thanks its customers for their cooperation during this statewide situation. If customers have specific questions, they can contact the company at 800/PGE-5000.

The CAISO is the agency responsible for managing California's power grid. For more information on the CAISO or the Stage 2 electric emergency, please visit their website at www.caiso.com or call 888/516-6397.

For more information about Pacific Gas and Electric Company, please visit the company's web site, www.pge.com.