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.

CHAPTER 11 UPDATE: PG&E ISSUES STATEMENT AFTER U.S. DISTRICT COURT REVERSES PREEMPTION DECISION

San Francisco -- Pacific Gas and Electric Company today issued the following statement after the U.S. District Court reversed the U.S. Bankruptcy Court's preemption decision:

"Today's ruling is consistent with our interpretation of bankruptcy statutes, which PG&E believes expressly preempt state law to allow the Bankruptcy Court to fully implement our reorganization plan. While we are still reviewing the 37-page decision, we are pleased with the federal district court's ruling.

"PG&E's plan of reorganization seeks to preempt only a limited number of state laws and regulations necessary to allow it to emerge from bankruptcy. The reorganized utility and the three new companies would be subject to all applicable federal, state and local laws, including environmental and public health and safety regulations."