PG&E Corporation Acquires Merchant Generation Facility In Mississippi


Bethesda, Md. -- PG&E Corporation's (NYSE: PCG) National Energy Group today announced that it has agreed to acquire Duke Energy North America's 500-megawatt merchant generation Attala Energy Facility. The acquisition is expected to be completed at the end of September following regulatory approval.

"This purchase fits into our overall strategic growth plan," said Chris Iribe, president and chief operating officer of the National Energy Group's Eastern Region. "It strengthens our growing supply position in the Southern United States. Our innovative financing plan for the Attala facility allows us to achieve capital velocity by using our resources in an effective, and efficient manner that provides the greatest shareholder value."

Attala is a combined cycle, natural gas-fired merchant generation facility located in central Mississippi. It will utilize General Electric 7FA combustion turbines. Construction of the facility began last March and commercial operation is scheduled for the summer of 2001. The plant will deliver into the Entergy wholesale market.

"This purchase makes us an early and well-positioned entrant into the region's power market," said Greg Kelly, vice president of marketing and business development of the National Energy Group's Eastern Region. "There is a critical need for additional electricity across the country. With creative projects like Attala that integrate our marketing and generation units, we provide faster, better, and smarter solutions for our customers," he added.

"The project will be financed with an innovative structure to maintain control of operations and output, while minimizing the need for PG&E equity capital," said John Cooper, chief financial officer of the PG&E National Energy Group.

"We recognize the importance of being reliable, flexible, and fast. By being first to market we are helping to define excellence in energy and that benefits customers and shareholders alike," said Iribe.

PG&E Corporation with 1999 revenues of nearly $21 billion and operations in 21 states, markets energy services and products throughout North America through its National Energy Group. The Corporation has ownership and management interests in more than 30 power plants and has one of the largest energy trading and risk management programs in North America.


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