California energy consumers and PG&E join forces for customer choice.

SAN FRANCISCO--(BUSINESS WIRE)--Dec. 9, 1994--A consortium of large electric users and independent power producers and the state's largest utility Friday announced a cooperative effort to promote competition and customer choice in the electric industry.

Californians for Competitive Electricity (CCE), which represents large industrial manufacturing customers, major food processors and independent power producers, and Pacific Gas and Electric Company said they had reached agreement on a set of objectives and principles that should guide the restructuring of California's electric industry.

The restructuring effort was begun by the California Public Utilities Commission in April when it announced its intention to give customers direct access to their choice of electric generating sources.

The consumer group and PG&E stated they will "encourage vigorous and fair competition in electric supply to provide customers choice and to promote lower prices for all customers through direct access."

The consortium supports the commission's proposal to begin direct access on Jan. 1, 1996, or as soon thereafter as regulatory approvals are secured.

"Market mechanisms, including the need for additional power pools, should not be pre-determined, but allowed to develop to fill market needs," said the joint statement of objectives.

"It is vital for the economic well-being of California that the state offer competitive electricity supplies and rates for its businesses and industries," said Glen Sheeren, CCE chairman. "We and PG&E are committed to working together and with others to achieve a competitive energy market for Californians offering competitive prices."

Robert D. Glynn Jr., PG&E executive vice president, said, "Our largest customers provide thousands of jobs in California. We are vigorously supportive of retaining jobs and industry in the state. All Californians benefit when the economic foundation of the state is strengthened through competition."

Glynn noted that PG&E currently offers an economic incentive discount to help its largest customers to keep industry and jobs in the state. Both groups said competition would ultimately bring lower prices and improved service to all California electric customers.

The consumer group and PG&E pledged to "preserve the safety and reliability of California's electric supply and distribution system and assure that all Californians continue to have non-discriminatory access to a full range of electric services at competitive prices."

The agreement also noted:

-- That social and cost effective environmental policies should be continued and that their costs should be fairly shared.

-- The financial integrity of California utilities must be maintained.

-- The sanctity of existing contracts and agreements must be recognized.

CCE and PG&E promised to work together in various customer, regulatory and legislative forums to seek customer choice and direct access.

The CCE, a coalition formed earlier this year to research and develop proposals on the restructuring issue, includes the California Independent Energy Producers Association, California Large Energy Consumers Association, California League of Food Processors, California Manufacturers Association, Destec Energy and Wickland Power Services.

CONTACT: Pacific Gas and Electric Co.

              Paul Ward, 415/973-5920
              Californians for Competitive Electricity (CCE)
              D.J. Smith, 916/446-5508