press release

Chevron Press Release - Chevron Launches New Unit To Become First Petroleum Firm

SAN FRANCISCO, July 27, 2000 -- Building on its customer-driven strategy and strong market position, Chevron Products Co. today announced the launch of Chevron Energy Solutions, a new unit that will deliver customized, cost-reducing energy solutions to commercial and industrial businesses and institutions nationwide. The move makes Chevron the first petroleum company to offer a full range of energy services to firms and institutions in the burgeoning U.S. market, which has an estimated yearly demand -- excluding energy commodity sales -- of more than $100 billion.

Chevron Energy Solutions, or CES, was created through Chevron's purchase of the value-added services business of PG&E Corp.'s retail energy services unit. The purchase, completed July 21, encompasses energy management, energy efficiency, power quality, distributed generation, and billing and information services, as well as related infrastructure assets. More than 140 professionals who were previously with the unit have joined CES' growing staff. CES is based in San Francisco and has 18 offices in 13 states.

"Chevron Energy Solutions is poised to create significant value for customers by combining the talent and experience from a leading energy services company with Chevron's technical and product marketing expertise," said Patricia Woertz, president of Chevron Products Co. "CES plans to leverage e-commerce and use the Internet to deliver value-added energy services.

"Since 1992, Chevron has found innovative ways to reduce energy costs at our own facilities, resulting in savings of more than $1 billion," Woertz added. "Chevron Energy Solutions will allow us to build on this past experience and knowledge to create additional value for our customers."

Concurrently, Chevron announced it has appointed James C. Davis to lead Chevron Energy Solutions as its president. Davis, formerly senior vice president - integrated services of the retail energy services unit of PG&E Corp., was integral to that company's rapid growth in value-added products and services contracts nationwide. Earlier in his career, he held executive positions at Duke/Louis Dreyfus, Enron Capital & Trade Resources, and Access Energy Corp.

"We are delighted to have Jim and the exceptional team of professionals that now form the foundation of Chevron Energy Solutions," said Woertz.

Chevron Products Co., an operating unit of Chevron Corp., is one of the largest refiners and marketers of petroleum products in the United States.

Chevron Corp., headquartered in San Francisco, is a leading energy company, operating in about 90 countries and employing about 31,000 people worldwide.

Updated: July 2000