PG&E Corporation Announces Expansion Of Mid-Atlantic Portfolio Through Merchant Tolling Agreement With Columbia Electric Corporation


Bethesda, Md. -- PG&E Corporation's (NYSE: PCG) National Energy Group today announced a 14 1/2 -year tolling agreement with Liberty Electric Power, LLC (Liberty), a wholly owned subsidiary of Columbia Electric Corporation. The arrangement complements the five-plant portfolio PG&E National Energy Group currently controls in the mid-Atlantic power market. Under the terms of the agreement, PG&E National Energy Group has contracted with Liberty for long-term capacity rights at Liberty's 530-megawatt natural gas-fueled combined-cycle Liberty Electric Power Project, located in southeast suburban Philadelphia.

"This transaction allows us to utilize our skills to complement Columbia Electric's needs and leverage our strong position in the mid-Atlantic region. This contributes to the establishment of images/news/newsal Energy Group as one of the fastest growing spark spread managers in North America," said Lyn Maddox, president and COO of the National Energy Group's trading operation.images/news/news

Peter Greenberg, PG&E National Energy Group vice president of marketing & business development, Eastern region added, "The agreement strengthens our regional asset base -- complementing the Company's existing plants and our fleet of power generation projects in development -- and adds to the diversity of our fuel mix. Our accomplishments in the mid-Atlantic region made us an attractive partner and we look forward to a successful relationship with Columbia Electric."

Columbia Electric Corporation's Vice President of Energy Management, Ed Jarmas, said, "PG&E National Energy Group's experience marketing generation in the mid-Atlantic region, and Columbia Electric's expertise in developing large-scale independent power projects made this a natural fit. This is a win-win for both companies."

Columbia Electric Corporation, a subsidiary of Columbia Energy Group, is an unregulated electric generation company whose primary focus is the development, ownership, and operation of clean natural gas fueled power plants.

Columbia Energy Group, based in Herndon, Va., is one of the nation's leading energy services companies, with assets of approximately $7 billion. Its operating companies engage in nearly all phases of the natural gas business, including exploration and production, transmission, storage and distribution, as well as retail energy marketing, propane and petroleum product sales, and electric power generation.

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, newly headquartered in Bethesda, Md. The Corporation has ownership and management interests in images/news/news0 power plants and has one of the largest energy trading and risk management programs in North America.


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