SAN FRANCISCO - Pacific Gas and Electric Company today issued the following statement, in response to the emergency declaration which Governor Davis issued late this evening:

"We support all efforts that maintain the flow of power to our customers. In that respect, today's emergency actions are appropriate.

"There are two critical steps which must be taken to resolve California's energy crisis: First, a stable supply of electricity must be secured, through long-term contracts at affordable prices. Second, California's utilities must be returned to financial health so that outages do not become every day occurrences for our customers."