NEWS MEDIA CONTACT:
Sandra McDonough, 503/833-4601
Natalie Wymer, 301/280-5654
PG&E National Energy Group
EDITORS: Please do not use "Pacific Gas
and Electric" or "PG&E" when referring to PG&E
Corporation or its wholly owned subsidiary, PG&E National Energy
Group, Inc. PG&E National Energy Group is not the same company
as Pacific Gas and Electric Company, the utility, and is not regulated
by the California Public Utilities Commission. Customers of Pacific
Gas and Electric Company do not have to buy products or services from
PG&E National Energy Group in order to continue to receive quality
regulated services from Pacific Gas and Electric Company.
NATIONAL ENERGY GROUP AND SUMITOMO CORPORATION ANNOUNCE AGREEMENT
ON HERMISTON GENERATING
BETHESDA, Md. – PG&E National Energy Group, Inc. has signed
an agreement to sell one-half of its 50 percent interest in the
Hermiston Generating plant to Sumitomo Corporation and Sumitomo
Corporation of America. The plant will continue to be operated and
managed by an affiliate of PG&E National Energy Group, and no
employee changes are expected. PG&E National Energy Group is
a wholly owned subsidiary of PG&E Corporation (NYSE: PCG).
The 474-megawatt Hermiston plant is a cogeneration facility fueled
by natural gas. Employing more than 20, the plant entered commercial
service in July 1996. Electricity capacity and output generated
by the plant is provided to PacifiCorp under a long-term power sale
agreement. The facility also sells steam to a nearby food processing
facility owned by Lamb-Weston Inc.
PG&E National Energy Group and Sumitomo expect to complete
the sale by Dec. 31, 2002, following necessary regulatory approvals.
The move is consistent with PG&E National Energy Group, Inc.’s
previously announced strategy to explore options to raise cash and
reduce its indebtedness, ongoing guarantee and working capital requirements.
These options include, but are not limited to sales of assets and
businesses, debt restructuring, and reorganization of existing operations.
Sumitomo Corporation (http://www.sumitomocorp.co.jp)
is one of the world's leading fully integrated trading and investment
enterprises, and a major distributor of commodities, industrial
goods, and consumer goods. Besides its role as international trader,
Sumitomo Corporation is an active investor in a diverse range of
businesses that integrate with existing operations, or that position
the company in markets with long-term potential. Sumitomo Corporation
is headquartered in Japan, and has offices in 87 other countries
around the world.
Established in 1952 and headquartered in New York, Sumitomo Corporation
of America (http://www.sumitomocorp.com)
is the largest wholly owned subsidiary of Sumitomo Corporation,
with offices in 12 major U.S. cities. As an integrated global trading
firm with diversified investments and trading businesses, Sumitomo
Corporation of America works closely with its parent as an organizer
of multinational projects and financier.
Headquartered in Bethesda, Md., PG&E National Energy Group,
Inc. develops, builds, owns and operates electric generating and
natural gas pipeline facilities and provides energy trading, marketing
and risk-management services.
PG&E National Energy Group and any other company referenced herein which uses the PG&E name or logo are not the same company as Pacific Gas and Electric Company, the California utility. These companies are not regulated by the California Public Utilities Commission, and customers do not have to buy products from these companies in order to continue to receive quality regulated services from the utility.