press release

Chevron Press Release - Chevron Corp. To Purchase PG&E Corp.'s Value-Added Energy Services Business

SAN FRANCISCO, June 1 -- Chevron Corp. (NYSE: CHV) and PG&E Corporation (NYSE: PCG) today announced that Chevron is purchasing a portion of PG&E Corp's retail energy services business, PG&E Energy Services. Terms of the transaction, which is expected to close by mid July, were not disclosed.

The transaction encompasses PG&E Energy Services' retail value-added business. This includes energy management, energy efficiency, billing and information services, and other products and services, for major commercial, industrial and institutional customers, as well as related infrastructure assets.

"This purchase will help position Chevron to provide total energy solutions for its commercial and industrial customers," said Patricia Woertz, president of Chevron Products Company. "The energy services business is vibrant and growing, and this acquisition will accelerate our entry into the value-added services segment of the energy market."

"A priority of the sale of the retail value-added services business was to find a buyer that could support the needs of existing PG&E Energy Services' customers," said Thomas G. Boren, president and CEO of the PG&E National Energy Group. "Chevron is an excellent choice to acquire this portion of our business. The company has a strong record of providing first-class customer service."

Today's announcement follows a recent decision by PG&E Corporation to exit its retail energy services business, which will allow the company to give added focus to the wholesale generating, energy commodities trading and natural gas transmission activities of the PG&E National Energy Group.

With more than $36 billion in revenues, San Francisco-based Chevron is one of the world s largest petroleum companies. The company explores for, refines and markets petroleum products, in addition to conducting energy services and e-procurement businesses.

PG&E Corporation, with revenues of more than $20 billion and operations in 21 states, markets energy services and products throughout North America through its National Energy Group. PG&E Corporation s businesses also include Pacific Gas and Electric Company, the Northern and Central California utility that delivers natural gas and electricity to one in every 20 Americans.

Updated: June 2000