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PG&E Energy Services Plugs into IBM for World-Class Electronic Capabilities

As Energy Deregulation Shifts Into High Gear, Pact Will Provide Flexible, Networked Customer Services via IBM's Business Process Management

EDITORS: Please do not use "Pacific Gas & Electric" or "PG&E" when referring to PG&E Energy Services. PG&E Energy Services is not the same company as Pacific Gas & Electric Company, the utility. PG&E Energy Services is not regulated by the California Public Utilities Commission; & customers do not have to buy PG&E Energy Services&#39 products in order to continue to receive quality regulated services from Pacific Gas - 27 Apr 1998: - PG&E Energy Services announced today that it has entered into a landmark agreement with IBM that pioneers a fast, flexible approach to customer enrollment and relationship management. The multi-year contract will significantly enhance PG&E Energy Services' competitiveness by enabling quick expansion and delivery of electronic customer service capabilities, lowering operating expenses, and creating new, customized products to serve its growing base of customers nationwide.

PG&E Energy Services will leverage IBM's services leadership, energy industry knowledge and technology resources - including the IBM Global Network, one of the world's largest data networks -- to create a scaleable platform to serve commercial and residential customers through several essential functions, including:

"We're bringing to reality our vision of customers doing business with us when they want, where they want, and however they want," said Scott Gebhardt, president and CEO of PG&E Energy Services. "And by coupling the industry expertise of our two companies, we'll be able to bring new services to market at lightning speed, with great efficiency and flexibility as our market grows nationwide."

The agreement marks IBM's emergence into the field of Business Process Management (BPM) services, which allow companies to streamline operations, reduce costs and enhance revenues through the reengineering, management and operation of their key internal business processes. In addition to networked service capabilities, BPM will provide PG&E Energy Services with continuous business process improvements -- for example, by leveraging the latest technology to analyze purchase behavior and product usage patterns among market segments in order to develop new, customized products and services. IBM Business Partners, including Call
Interactive, SITEL, and Systems and Computer Technology Corporation will assist IBM in delivering these services.

"This is an excellent example of how information technology plays a key role in the transformation of the industry," said Karen Riley, general manager, IBM Business Process Management, IBM Global Services. "IBM is committed to working with leading-edge clients in multiple industries to help them implement their customer relationship management processes. With deregulation underway, and the power to choose placed squarely in the hands of customers, PG&E Energy Services is proving to be a leader in using information technology to gain significant competitive advantage."

An unregulated subsidiary of PG&E Corporation (NYSE:PCG), San Francisco-based PG&E Energy Services provides customers with competitively-priced natural gas and electricity plus comprehensive, customized services to manage and reduce their energy costs. Examples of service offerings include discounted electricity and natural gas, environmentally-friendly electricity supply mixes, regulatory and tariff consultation, site audits, energy efficiency retrofits, power quality solutions, billing options and other energy/information management programs. To date, PG&E Energy Services has entered into long-term agreements with ARCO, McDonald's, Blockbuster, Safeway, Neiman Marcus, Smucker's, the Community College League of California and many others, representing nearly $1.5 billion in revenue. Also, through a PG&E Corporation alliance with Ultramar Diamond Shamrock, PG&E Energy Services will provide a wide range of energy services for thousands of UDS sites throughout North America.

With 1997 revenue of approximately $26 billion and 110,000 professionals in 164 countries, IBM Global Services is the world's largest and most versatile IT services provider. Its capabilities span a complete range, including product support and global network services, as well as consulting, outsourcing, systems integration, and education and training. IBM Global Services operates the IBM Global Network, one of the world's largest data networks. IBM's Global Utility and Energy Services Industry, along with business partners, builds solutions to help companies around the world improve their business processes and discover new ways to make technology work for them and their customers.

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For more information, please visit PG&E Energy Services' website at
http://www.pgees.com and IBM's websites at http://www.ibm.com/utility and
http://www.ibm.com/services.

Contact(s) information

Diane Sable
PG&E Energy Services
415-733-4629

Ed Trapasso
IBM
914-332-3474
etrapasso@us.ibm.com

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