PG&E Corp. Delivers On Environmental Pledges; Applauds Governor On Massachusetts Emissions Reduction Initiative


(BOSTON, MA) - PG&E Corporation's (NYSE: PCG) National Energy Group today applauded the leadership of the Cellucci administration for its initiative in securing commitments from electric power generating companies to implement progressive air emissions reductions plans. PG&E Corporation, along with four other electric power generators, submitted action plans to the governor, who announced the commitments to new standards at a press conference today. Governor Cellucci has instructed the Department of Environmental Protection to draft regulations based on these standards.

"This announcement reaffirms Massachusetts' position as a national leader in setting the most aggressive integrated multi-pollutant standards for power plant emissions," said PG&E National Energy Group Vice President and Cimages/news/newsstrative Officer for the Northeast Steven A. Wolfgram. "We hope this policy will contribute to a broader dialogue that will lead to national standards that contribute to continueimages/news/newsnts in air quality, electric reliability and fair competition."

The plans submitted for the Company's Brayton Point and Salem Harbor Stations include measures to reduce emissions rates for nitrogen oxides (NOx) to 1.5 lbs./MWh and sulfur dioxide (SO2) to 3.0 lbs./MWh. The plan also includes strategies to reduce emissions of mercury and particulates. According to Company officials, improvement options under consideration include boiler replacements, operating curtailments, unit retirements, increased use of natural gas and add-on control technologies, such as selective non-catalytic reduction, limestone injection, selective catalytic reduction, scrubbers, and fuel switching, among others.

"We have continued to make good on the promises we made when we purchased the Brayton Point and Salem Harbor plants less than two years ago," Wolfgram said. "We are able to commit to the governor's new standards because we have been working toward them all along. This initiative once again shows the benefits that come from a cooperative effort that balances environmental concerns with economic feasibility."

In 1998, the Company committed to achieving substantial air emission reductions by 2010 as part of the "Consumers First" agreement that accompanied electricity restructuring legislation in Massachusetts. Since that time, PG&E Corporation has also committed to emissions reductions that go well beyond the requirements of existing regulations.

In 1999, the Company launched a three-year effort to cut NOx and SO2 emissions at the Salem Harbor and Brayton Point Stations. In addition, since 1990, more than $130 million has been invested at both plants to reduce emissions rates by 60 and 40 percent for NOX and SO2, respectimages/news/news month the Company announced plans to develop a $400 million modernization of the Salem Harbor Station, that when completed, will make it one of the cleanest coal-fueled power plants in the country.

"It's important that the citizens of Massachusetts realize that we are part of the solution. Together with the administration and members of the environmental community, we are taking an important step forward in improving air quality in the state and following through on our commitment to our communities," said Wolfgram.

PG&E Corporation with 1999 operating revenues of nearly $21 billion and operations in 27 states, markets energy services and products throughout North America through its National Energy Group. The Corporation has a significant presence in the New England area with ownership in 20 power plants and one of the most active power trading businesses in the region.


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