SAN FRANCISCO - Pacific Gas and Electric Company today issued the following statement, in response to the announcement by Governor Davis on the results of the State's auction for power contracts:

"We are pleased that the State government has received bids for long-term energy contracts from electricity generators. We agree that long-term contracts are an important mechanism for stabilizing energy prices and protecting consumers from market fluctuations.

"Pacific Gas and Electric Company has consistently sought permission to pursue long-term contracts but state regulation severely limits our ability to do so. As Governor Davis has recognized, utilizing long-term contracts is a critical part of an overall constructive solution to the energy crisis confronting California."