PG&E Energy Trading Announces Agreement to Gas Supply and Asset Management Arrangement with Roanoke Gas Company and Bluefield Gas Company

Business Wire, Oct 20, 1999

HOUSTON--(BUSINESS WIRE)--Oct. 20, 1999--

PG&E Energy Trading-Gas Corporation (PG&E Energy Trading), a subsidiary of PG&E Corporation (NYSE:PCG), today announced an agreement to a gas supply and asset management arrangement with Roanoke Gas Company and Bluefield Gas Company. Under the terms of the arrangement, PG&E Energy Trading will supply all of the natural gas requirements of both utilities. In addition, the deal, to be effective Nov. 1, 1999, will include management of the portfolio of natural gas transportation and storage assets of the two companies for a term of one year.

Roanoke and Bluefield Gas Companies serve over 55,000 customers and have over 2.7 BCF of natural gas storage capacity. Roanoke Gas Company is a 116-year old natural gas public utility located in the Roanoke Valley of Virginia. Bluefield Gas Company is located in Bluefield, W. Va.

Art Pendleton, president and chief operating officer of Roanoke Gas Company and Bluefield Gas Company said, "We strongly believe that this partnership with PG&E Energy Trading will result in lower gas costs that will directly benefit our customers and ensure that natural gas remains the energy resource of choice in the markets we serve."

Michael E. Flinn, executive vice president and chief operating officer of PG&E Energy Trading said, "We are pleased to have the opportunity to serve these two local distribution companies and to help them optimize their portfolio of storage and transportation assets."

PG&E Energy Trading, headquartered in Houston, is one of the largest energy marketers in North America, providing wholesale power, natural gas and price risk management products to industrial and utility customers. PG&E Energy Trading is a subsidiary of PG&E Corporation, an energy-based holding company headquartered in San Francisco.

Roanoke Gas Company and Bluefield Gas Company are subsidiaries of RGC Resources, Inc., a holding company based in Roanoke, Va.

EDITORS: Please do not use "Pacific Gas & Electric" or "PG&E" when referring to PG&E Energy Trading. PG&E Energy Trading is not the same company as Pacific Gas & Electric Company, the utility, and is not regulated by the California Public Utilities Commission. Customers of Pacific Gas and Electric Company do not have to purchase products or services from PG&E Energy Trading to continue to receive quality service from Pacific Gas and Electric Company.