(SAN FRANCISCO) - Meeting California's growing demand for natural gas deliveries is paramount to the state's economic vitality. In an ongoing effort to meet the increased needs of both homes and businesses, Pacific Gas and Electric Company has begun a major gas expansion project in Northern California. The project will increase the firm capacity of the Company's Redwood Path by 200,000 Decatherms per day (Dth/day). That is enough gas to warm 1.2 million homes in our service area each year. With more natural gas powered plants coming on line, the increase could supply enough gas to run a 1200-megawatt power plant generating enough electricity to light 1.2 million homes.

Line 401 brings natural gas into California from Canada--stretching 425 miles from Malin, Oregon (California/Oregon border) to Panoche Station in San Benito County. The new expansion will add two sections of pipeline, a total of 14.1 miles in Shasta and Modoc counties in Northern California. Since 1998, the Redwood Path has, on average, been operating at more than 95 percent of its rated firm capacity. This strong demand is driven by the path's access to Canadian gas supplies-California's preferred source of lower priced natural gas.

The court adopted bankruptcy review process for capital expenditures has approved the $39.5 million expansion project.

Construction began in late October 2001, and the expected completion date is September 2002.