FOR IMMEDIATE RELEASE

Media Contact: Terrie Prosper - 415.703.1366 - news@cpuc.ca.gov

PUC RESPONDS TO COURT DENIAL OF STAY IN PG&E BANKRUPTCY SETTLEMENT

SAN FRANCISCO, April 9, 2004 - California Public Utilities Commission (PUC) President Michael R. Peevey today issued the following statement in response to the U.S. District Court for the Northern District of California's denial of a stay regarding the Pacific Gas and Electric Company (PG&E) bankruptcy settlement:

"I am very pleased with Judge Walker's decision today and agree that a stay would have significantly harmed PG&E, its creditors, and the public. PG&E will emerge from bankruptcy according to the settlement on April 12. Attacks on the settlement by dissenting PUC Commissioners as constraining the PUC are blatantly wrong. The PUC used its authority to end the crisis, providing all the benefits we could for Californians, including lowering rates and preserving 140,000 acres of PG&E's beautiful watershed lands forever. It is time to close this chapter on the energy crisis."

For more information on the PUC, please visit www.cpuc.ca.gov.

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