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.

ATTALA GENERATING PLANT BEGINS COMMERCIAL SERVICE

McADAMS, Miss.-PG&E Corporation's (NYSE: PCG) National Energy Group announced today that its Attala Generating Plant entered commercial service this morning.

The new power plant, located in central Mississippi's Attala County roughly 75 miles north-northeast of Jackson, is capable of producing 500 megawatts of electricity, enough to power about half-a-million homes. The combined-cycle, natural gas-fired power generating facility is a "merchant" plant, selling electricity competitively to the region's various utilities and other purchasers via the Entergy transmission lines.

The Attala Generating Plant was completed ahead of schedule. Since construction began in March 2000, Attala Generating has contributed more than $50 million to the region's economy in wages, subcontracts and local purchases. The plant currently employs 26 people.

Attala Generating Company, LLC, is a wholly owned, indirect subsidiary of PG&E National Energy Group, which develops, owns and operates electric generating and gas pipeline facilities and provides energy trading, marketing and risk-management services. The National Energy Group is headquartered in Bethesda, Md.