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PG&E COMMENTS ON BUSH ENERGY PLAN

San Francisco, CA -- Pacific Gas and Electric Company today issued the following statement on the Bush Administration's proposed energy policy:

"We are grateful that the Bush Administration has developed a comprehensive energy policy. The Administration clearly has invested a great deal of thought and expertise in proposing recommendations to address longer-term energy issues, on a wide variety of fronts.

"We are pleased in particular with the recommendations encouraging development of needed natural gas infrastructure and electricity generation. We are also pleased with the proposal's focus on promoting conservation and improved energy efficiency. And there may be opportunities to further strengthen this vital component of national energy policy. Only through a one-two punch of reducing energy demand and increasing supply will California be able to minimize the number of power outages it faces.

"However, in terms of providing immediate assistance in getting electricity prices down to just and reasonable levels, we continue to believe that FERC must stabilize the Western market this summer through circuit breakers, price caps, or cost-based rates, such as proposed in the bipartisan bill by Senators Feinstein (D-CA) and Smith (R-OR). We look forward to continuing to work with the Administration on this, and many other elements of the energy crisis."