SAN FRANCISCO (CA) - Pacific Gas and Electric Company issued the following statement after Governor Gray Davis' State of the State address:

"We appreciate the Governor's clear recognition of the critical role utilities play and his rejection of utility bankruptcy as a viable outcome.

"While the Governor's statements are welcome, we are concerned that unless strong steps are taken over the next few days, the financial crisis facing California's utilities will bring us to the point where we can no longer buy electricity and gas for our customers.

"We applaud the Governor's call for conservation. In fact, California's utilities have led the nation in innovative energy efficiency programs. We must start today aggressive efforts to reduce demand to avoid serious shortages by next summer. Only California's utilities have the expertise and programs to give our customers the tools they need to manage their energy costs."