EDITORS: Please do not use
"Pacific Gas and Electric" or "PG&E" when
referring to PG&E Corporation or its National Energy Group.
The PG&E National Energy Group is not the same company as Pacific
Gas and 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 buy products or services from
the National Energy Group in order to continue to receive quality
regulated services from Pacific Gas and Electric Company.
SPENCER STATION GENERATING TO SHUT DOWN
BETHESDA, Md. - PG&E National Energy Group, Inc. today announced
that it plans to shut down its Spencer Station Generating facility
in Denton, northwest of Dallas. The decision was made due to the
increased cost of doing business across the entire wholesale power
sector and a slowdown in the growth of demand for electric power
because of current economic conditions. PG&E National Energy
Group, Inc. is a wholly owned subsidiary of PG&E Corporation
Electricity deregulation in Texas has resulted in the construction
of several new generating stations that use highly efficient state-of-the-art
technology. The addition of these plants to the electric supply
mix has significantly impacted the economies of operating older
plants, such as Spencer Station.
PG&E National Energy Group acquired the 176-megawatt natural
gas-fired plant in June 2001. Under a five-year contract, the company,
through its power-trading unit provides wholesale power purchased
from the Texas wholesale power markets to the city of Denton. Despite
the shut down, PG&E National Energy Group will continue to
provide power to meet the city's electricity needs.
The plant, which entered commercial service in 1954, is now owned
by Spencer Station Generating Company, L.P., an affiliate of PG&E
National Energy Group, which administers the generating units on
behalf of Spencer Station.
Completion of the shut down process is expected by Dec. 31, 2002.
The plant's 27 employees will be offered severance and other benefits.
Headquartered in Bethesda, Md., PG&E National Energy Group
develops, builds, owns and operates electric generating and natural
gas pipeline facilities and provides energy trading, marketing
and risk-management services.