Business Description
PG&E Corporation, incorporated in California in 1995, is an energy-based holding
company that conducts its business principally through Pacific Gas and Electric
Company, or the Utility, a public utility operating in northern and central California.
The Utility engages primarily in the businesses of electricity and natural gas
distribution, electricity generation, electricity transmission, and natural gas
transportation and storage. PG&E Corporation became the holding company of
the Utility and its subsidiaries on January'1, 1997. The Utility, incorporated
in California in 1905, is the predecessor of PG&E Corporation. PG&E Corporation
also currently owns National Energy & Gas Transmission, Inc., or NEGT, formerly
known as PG&E National Energy Group, Inc., which engages in electricity generation
and natural gas transportation in the United States, or U.S.
The Utility
Its revenues are generated mainly through the sale and delivery of electricity
and natural gas. The Utility is regulated primarily by the California Public
Utilities Commission, or the CPUC, and the Federal Energy Regulatory Commission,
or the FERC.
NEGT
NEGT was incorporated on December'18, 1998, as a wholly owned subsidiary of
PG&E Corporation. NEGT's subsidiaries include: Gas Transmission Northwest
Corporation (formerly PG&E Gas Transmission Northwest Corporation), North
Baja Pipeline, LLC, National Energy Power Company, LLC (formerly PG&E Generating
Power Group, LLC) and its subsidiaries, USGen New England, Inc. and its affiliates,
and National Energy & Gas Transmission Trading Holdings Corporation and
its subsidiaries.
Competition
''Increased competition as a result of the takeover by condemnation of the
Utility's distribution assets, duplication of the Utility's distribution assets
or services by local public utility districts, self-generation by its customers
and other forms of competition that may result in stranded investment capital,
decreased customer growth, loss of customer load and additional barriers to
cost recovery; and
''The extent to which the Utility's distribution customers switch between purchasing
electricity from the Utility and from alternate energy service providers as
direct access customers and the extent to which cities, counties and others
in the Utility's service territory begin directly serving the Utility's customers
with their own facilities or combine to form community choice aggregators.
7.11% 
158.51 %