press release

Texaco Press Release - Texaco Energy Services LLC Launches Residential Natural Gas Marketing Program

FOR RELEASE: MONDAY, JULY 14, 1997.

HOUSTON, July 14 - Texaco Energy Services LLC announced today that residents in the Shenango Valley of Western Pennsylvania can now choose Texaco as their natural gas supplier as part of National Fuel Gas Distribution's "Energy Select" Pilot Program.

This program will allow residential and small commercial customers to choose their own supplier of natural gas to use in their homes or businesses, and Texaco Energy Services is one of the approved suppliers from which to choose. Residential and commercial customers in the cities of Sharon, Farrell, Wheatland, Sharpsville, Hermitage, West Middlesex and Shenango Township are eligible to participate in the "Energy Select" pilot program.

According to Texaco Energy Services Executive Vice President Jack Abadie, "We are well suited to enter the retail market in the Shenango Valley. Texaco has been supplying natural gas to National Fuel, the local gas utility company, for some time. Additionally, purchasing natural gas directly from Texaco will allow customers to take advantage of the same reliability, competitive prices and outstanding customer service that we have been providing to large commercial and industrial customers for decades."

Texaco Energy Services intends to offer customers two pricing options from which to choose, as well as enrollment incentives. The customer will also have the option to choose a budget billing plan which lets the consumer evenly spread payments across each month during the pilot program.

According to Jane Evans, Texaco Energy Services Vice President responsible for retail pilot programs, "The versatility of our program will be attractive to the consumer since it will include billing options to assist them in managing their natural gas bills. During the pilot, customers will have the opportunity to exercise choice in a marketplace that was previously more served by a regulated utility. Consumers can expect to realize savings just as they experienced after deregulation of long-distance telephone service. It also will be good for businesses, like ours, that were previously excluded from selling directly to residential and small commercial customers."

A comprehensive direct mail, radio and print ad campaign will support Texaco Energy Services efforts during the two month enrollment period which began on June 23rd.

The "Energy Select" pilot program will last 18 months. During this time, National Fuel will continue to read meters and maintain gas lines to end users. Texaco Energy Services will supply natural gas through the existing infrastructure and bill customers according to the plan they have chosen.

Texaco Energy Services, a wholly-owned affiliate of Texaco Natural Gas Inc. based in Houston, is a full-service retail marketing company designed to position the company to compete in the emerging, deregulated retail energy marketplace.

Updated: July 1997