Because so many on this list have supported California's energy
efficiency investments, I wanted you all to see this important update
(and to note my personal appreciation to PG&E for pursuing this issue
with skill and diligence at an extraordinarily difficult time):

CONTACT: Peter Miller or Craig Noble at (415) 777-0220

Energy Efficiency Funding Protected in PG&E Bankruptcy Case
Public Purpose Programs Essential to Help Keep the Lights on, Says NRDC

SAN FRANCISCO (May 16, 2001) - A judge in San Francisco federal court
today ruled that approximately $260 million that had been tied up in the
Pacific Gas and Electric Company (PG&E) bankruptcy proceedings will be
released to fund California energy efficiency programs. These funds come
from a small surcharge on utility customers' monthly bills and provide
desperately needed electricity savings that will help protect the
reliability of the state's overstressed power grid, said NRDC (Natural
Resources Defense Council).

"This is a victory for California consumers and the environment," said
Peter Miller, NRDC senior scientist. "NRDC worked very hard to ensure
that the state would make these important energy efficiency investments
in the first place."

In a ruling from the bench this morning, Judge Dennis Montali of the
U.S. Bankruptcy Court in San Francisco ruled in favor of a motion by
PG&E for authority to honor its obligations for public purpose programs.
NRDC, Environmental Defense and Utility Consumers' Action Network filed
a memo with the court in support of the utility's argument that it is
merely a conduit for the public purpose funds and that the funds should
be off limits to the utility's creditors. "PG&E is to be commended for
strenuous efforts here in a very good cause," said Ralph Cavanagh, NRDC
energy program director.

California has aggressively promoted energy efficiency in buildings and
equipment since the 1970s, reducing total peak electricity needs by
about one-fifth or 10,000 megawatts (MW). Approximately half of those
reductions have come from public purpose programs funded by a small
surcharge on bills paid by customers of PG&E, Southern California
Edison, and San Diego Gas & Light. Since 1998 alone, these programs have
delivered about 500 MW of electricity savings.

"At a time when the difference between an intact grid and rolling
blackouts is sometimes measured in the tens of megawatts, energy
efficiency clearly represents the fastest, cheapest and cleanest
solution to California's electricity dilemma," said Miller.

The public purpose programs provide financial incentives to businesses
and consumers to design more energy efficient buildings and to buy
energy efficient equipment, such as refrigerators, air conditioners,
light bulbs and clothes washers. They also provide funding for
investments in renewable energy, low-income energy services, and
long-term research and development for clean energy technologies.

The Natural Resources Defense Council is a national, non-profit
organization of scientists, lawyers and environmental specialists
dedicated to protecting public health and the environment. Founded in
1970, NRDC has more than 400,000 members nationwide, served from offices
in New York, Washington, Los Angeles and San Francisco. More information
is available through NRDC's Web site at www.nrdc.org.