(San Francisco) – PG&E Corporation (NYSE: PCG) announced today that it will give $500,000 in shareholder-funded contributions to support various programs and projects aimed at applied research and commercial development of energy efficient technologies through a newly created Energy Efficiency Center at the University of California at Davis.

Plans for the establishment of the center were unveiled in June 2005 by the California Clean Energy Fund (CalCEF), which then solicited proposals from universities in Northern California to create the world’s leading university-based center to advance the efficient use of energy. Governor Schwarzenegger, state energy officials, business leaders, environmental advocates and others attended a ceremony at UC Davis today, celebrating CalCEF’s selection of the university to be the home for the new institution.

Speaking at the event, PG&E Corporation Chairman, CEO and President Peter A. Darbee said, “California is the nation’s undisputed leader in energy efficiency. PG&E has been proud to play a significant role in building this track record. Our contribution will help ensure the early prominence and success of the new UC Davis Energy Efficiency Center, and will further demonstrate to our customers that PG&E’s commitment to reducing energy usage and protecting the environment is as strong as ever.”

PG&E Corporation will donate $100,000 per year over the next five years to the new Energy Efficiency Center. This leadership gift will help launch the Center’s aggressive, five-year fund-raising plan and will strengthen its ability to support energy efficiency advances throughout California. The company’s contribution will be focused on fellowships that will attract a new generation of engineers and entrepreneurs to the Center and on core support of the Center’s conferences and outreach efforts. Each year, the company will work with UC Davis to target the funds based on the emerging successes and needs of the Center.

Highlighting PG&E’s broad commitment to energy efficiency, Darbee pointed out that, over the next three years, PG&E expects to provide more than $1 billion of funding for various energy efficiency programs and customer demand reduction programs that will eliminate the need for construction of more than 1,000 megawatts of new generation facilities. Over the past 30 years, PG&E’s energy efficiency programs have helped keep California’s per capita energy usage essentially flat, compared with an increase of about 50 percent in the rest of the United States. This success has enabled the state to avoid the construction of 25 or more new power plants that would have been necessary over the past three decades, and it has prevented the emission of millions of tons of pollutants, including more than 60 million tons of carbon dioxide.

CalCEF is an independent non-profit corporation established in 2004 through the settlement agreement resolving Pacific Gas and Electric Company’s Chapter 11 proceeding. The utility agreed to provide CalCEF with $30 million in shareholder-funded support over the five-year period 2004 to 2008 to promote the commercial development of “clean energy” technologies, including those that increase energy efficiency, employ renewable energy, or reduce the environmental effects of energy use. CalCEF intends to use most of its funds to make equity investments in clean energy companies, and is working closely with venture capital firms to do so. Other than making the initial payments, PG&E has no control over CalCEF’s investments or activities.