(San Francisco, CA) -- PG&E Corporation was recognized today by a Department of Defense (DOD) agency for providing military reservists with pay and benefits while serving on active duty. The DOD's Employer Support for the Guard and Reserve (ESGR), which promotes understanding between reservists and their civilian employers, presented the Corporation with the Local ESGR Chair's Award. Given to a limited number of employers annually, the award was presented during a ceremony held today at PG&E Corporation headquarters in San Francisco.

"We are honored that ESGR is recognizing our company," said PG&E Corporation Chairman, CEO, and President Robert D. Glynn, Jr. "We believe it is our corporate responsibility to support our reservists' commitment to our country as they put their lives on the line for our country."

Twelve PG&E Corporation employees are presently on active duty with orders to support "Noble Eagle," "Enduring Freedom," and other important operations around the world. The Corporation's emergency military leave policy provides the difference between military pay and regular salary for up to six months of active duty. Based upon current circumstances, the leave policy has been extended for an additional six-month period. The Corporation also continues providing the full range of employee benefits to the reservists and his or her dependents for up to 18 months of military service. PG&E Corporation has historically reevaluated its leave policy during times of national crises and will continue to do so as the United States military responds to the events of September 11th.

Federal law requires companies to reinstate reservists returning from active duty but does not generally mandate that companies extend pay or benefits during military leave. The Corporation expanded benefits for reservists in September 2001 after the tragic events of September 11 and the ensuing need for deployment of U.S. troops.

"PG&E Corporation is to be commended for going above and beyond in their patriotic support of the men and women who maintain our nation's defenses," said Venna Bishop, chair of the San Jose committee of the ESGR. "We realize the tremendous impact it has on employers to have their employees deployed, and we applaud companies like PG&E Corporation for their understanding and dedicated support."

The Local ESGR Chair's Award is given to a limited number of employers annually in each state who demonstrate an extraordinary commitment to employees who serve in the Reserve and National Guard. Some Northern California companies and organizations that received the Local ESGR Chair's Awards in 2001 include US Bank, the Santa Clara County Sheriff's Department and Pratt Whitney. Local ESGR Chair's Award recipients automatically qualify for ESGR's Pro Patria ("For the Country") Award, which is given annually to one employer in each state. At today's ceremony, PG&E Corporation was also presented with the My Boss is a Patriot Award, which recognizes specific managers within organizations.

Robert D. Glynn, Jr., accepted the awards today on behalf of PG&E Corporation's 21,000 employees by reading the names of each of the Corporation's 12 reservists currently deployed domestically and overseas. Two of the active-duty soldiers recognized participated in the ceremony via telephone from their military stations at Camp Smith in Hawaii and the Portsmouth Naval Shipyard in New Hampshire. Also on the line was Captain K.M. McCoy, Shipyard Commander for the Portsmouth Naval Shipyard, who thanked the Corporation on behalf of the U.S. Navy for supporting employee reservists.

Seven PG&E Corporation employee reservists representing each branch of military service attended the ceremony in military dress Among them was Major John Busterud, a corporate attorney with PG&E Corporation's utility unit Pacific Gas and Electric Company and a reservist with the 351st Civil Affairs Command of the U.S. Army. In his remarks at today's ceremony, Major Busterud called PG&E Corporation's leave policy "a powerful and timely show of support for PG&E Corporation's citizen soldiers"

Also in attendance at today's ceremony was Lieutenant Jeff Hall, a PG&E Corporation accountant who recently returned from a four-month tour of duty with the U.S. Coast Guard in support of operation Noble Eagle. "PG&E Corporation's leave policy allowed me to earn my full salary and provide for my family while I carried out my orders," said Lieutenant Hall. "The Corporation's support of the Reserves made serving my country much easier."

The ESGR is an agency within the Office of the Assistant Secretary of Defense for Reserve Affairs. It was established in 1972 to promote cooperation and understanding between reservists and their civilian employers and to assist in the resolution of conflicts arising from an employee's military commitment. Today ESGR operates through a network of more than 4,500 volunteers throughout 54 committees located in each state, the District of Columbia, Guam, Puerto Rico and the Virgin Islands. The San Jose Committee of the ESGR encompasses San Mateo, Santa Clara, Santa Cruz, Monterey, and San Benito Counties.

PG&E Corporation is an energy-based holding company that distributes energy services and products throughout North America through the PG&E National Energy Group. PG&E Corporation's businesses also include Pacific Gas and Electric Company, the Northern and Central California utility that deliver natural gas and electricity service to one in every 20 Americans.

NOTE TO RADIO EDITORS: A radio actuality of this release is available at www.pge.com/radiomessages .