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.

PG&E CORPORATION WILL NOT DECLARE FIRST QUARTER DIVIDEND

(San Francisco, CA) - Citing the severe financial impact of the ongoing California energy crisis, PG&E Corporation (NYSE: PCG) today announced it will not declare and pay the regular common stock dividend of 30 cents per share for the first quarter of 2001.

Future common stock dividends will not be declared or paid until the Corporation's Board of Directors determines that the financial health of the Company will support such action.