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 NATIONAL ENERGY GROUP AND SUMITOMO CORPORATION ANNOUNCE
AGREEMENT ON HERMISTON GENERATING
BETHESDA, Md. - PG&E National Energy Group, Inc. has signed
an agreement to sell one-half of its 50 percent interest in the
Hermiston Generating plant to Sumitomo Corporation and Sumitomo
Corporation of America. The plant will continue to be operated
and managed by an affiliate of PG&E National Energy Group,
and no employee changes are expected. PG&E National Energy
Group is a wholly owned subsidiary of PG&E Corporation (NYSE:
The 474-megawatt Hermiston plant is a cogeneration facility fueled
by natural gas. Employing more than 20, the plant entered commercial
service in July 1996. Electricity capacity and output generated
by the plant is provided to PacifiCorp under a long-term power
sale agreement. The facility also sells steam to a nearby food
processing facility owned by Lamb-Weston Inc.
PG&E National Energy Group and Sumitomo expect to complete
the sale by Dec. 31, 2002, following necessary regulatory approvals.
The move is consistent with PG&E National Energy Group, Inc.'s
previously announced strategy to explore options to raise cash
and reduce its indebtedness, ongoing guarantee and working capital
requirements. These options include, but are not limited to sales
of assets and businesses, debt restructuring, and reorganization
of existing operations.
Sumitomo Corporation (http://www.sumitomocorp.co.jp) is one of
the world's leading fully integrated trading and investment enterprises,
and a major distributor of commodities, industrial goods, and consumer
goods. Besides its role as international trader, Sumitomo Corporation
is an active investor in a diverse range of businesses that integrate
with existing operations, or that position the company in markets
with long-term potential. Sumitomo Corporation is headquartered
in Japan, and has offices in 87 other countries around the world.
Established in 1952 and headquartered in New York, Sumitomo Corporation
of America (http://www.sumitomocorp.com) is the largest wholly
owned subsidiary of Sumitomo Corporation, with offices in 12 major
U.S. cities. As an integrated global trading firm with diversified
investments and trading businesses, Sumitomo Corporation of America
works closely with its parent as an organizer of multinational
projects and financier.
Headquartered in Bethesda, Md., PG&E National Energy Group,
Inc. develops, builds, owns and operates electric generating and
natural gas pipeline facilities and provides energy trading, marketing
and risk-management services.