(San Francisco, CA) - Following is a statement issued today by Pacific Gas and Electric Company in response to a federal court ruling this morning that upholds the recoverability of wholesale power costs in a case brought by Southern California Edison against the California Public Utilities Commission:

"PG&E is pleased that the federal judge in Los Angeles has agreed with Southern California Edison's assertion that federal law entitles the utility to recover its reasonably incurred wholesale power costs through retail rates. PG&E has filed a lawsuit in federal court in San Francisco raising the same issues. That suit is scheduled to be heard on January 30. We believe the California Public Utilities Commission should work together with California's utility companies as soon as possible on methods to stabilize customer rates to avoid rate shock from wholesale power costs."