New Unit to Focus on Strategic Energy and Telecom Investments

San Francisco - PG&E Corporation (NYSE: PCG) today announced the launch of a new business unit, Pacific Venture Capital, that will build and manage a portfolio of capital investments in growing energy and telecommunications companies.

"Pacific Venture Capital's mission is to generate new value for PG&E Corporation shareholders by investing in fast-growing, innovative energy and telecommunications companies, and to gain insight into new technologies and business models to impact our company and business strategy," said Robert D. Glynn, Jr., PG&E Corporation Chairman, CEO and President.

The Corporation announced it has appointed Bryant J. Tong as senior vice president of PG&E Corporation and president and chief executive officer of Pacific Venture Capital. Tong brings to his new position more than 23 years of experience, including leading successful corporations through start-up and high-growth cycles. He is responsible for the development and execution of Pacific Venture Capital's investment strategy, and reports to Peter A. Darbee, PG&E Corporation senior vice president and chief financial officer.

"Bryant's talents and executive experience in the venture capital field, combined with Peter's Wall Street experience at Goldman Sachs and Salomon Brothers, provide a wealth of financial expertise to drive Pacific Venture Capital," said Glynn.

Pacific Venture Capital plans to invest between $50 million and $100 million in its first year. "Our resources, industry expertise, and Northern California location put us in an excellent position to identify, contribute to, and share in the success of some of the most promising companies in these businesses," Tong said.

Pacific Venture Capital is a subsidiary of PG&E Corporation.

PG&E Corporation, with 1999 operating revenues of almost $21 billion and operations in 21 states, markets energy services and products throughout North America through its National Energy Group. PG&E Corporation's businesses also include Pacific Gas and Electric Company, the Northern and Central California utility that deliver natural gas and electricity to one in every 20 Americans.