GREEN HARVEST: FETZER VINEYARDS BECOMES
WORLD'S FIRST WINE PRODUCER TO PURCHASE
100% RENEWABLE-SOURCE ENERGY MIX

PG&E Energy Services Providing Clean Energy for 1999 Harvest and Beyond

EDITORS: Please do not use "Pacific Gas and Electric" or "PG&E" when referring to PG&E Energy Services. PG&E Energy Services is not the same company as Pacific Gas and Electric Company, the utility. PG&E Energy Services is not regulated by the California Public Utilities Commission; and customers who receive services from Pacific Gas and Electric Company do not have to buy PG&E Energy Services' products in order to continue to receive quality regulated services from Pacific Gas and Electric Company, the utility.

Media tours of the Fetzer winery and interviews with representatives of Fetzer, PG&E Energy Services and PG&E Corporation can be arranged through the above contacts. Harvest season at the winery provides excellent photo opportunities.

San Francisco, CA (September 14, 1999) - As California's multi-billion dollar wine industry gears up for this year's harvest, Fetzer Vineyards, the nation's sixth largest wine maker, today announced that it has become the first wine producer in the world to purchase, for all its operations, a power generation supply portfolio comprised of 100% renewable resources.
Under a long-term, contract with PG&E Energy Services, the retail services unit of PG&E Corporation (NYSE: PCG), Fetzer is now purchasing environmentally-friendly "green" electricity supplies for its Hopland winery - the largest wine production facility in Mendocino County, California and producer of 3.5 million cases of wine each year. Power sales to the Hopland winery are expected to exceed 5 million kilowatt-hours annually.

The power mix Fetzer is buying - also known as PG&E Energy Services' Clean Choice 100(tm) - is a supply portfolio comprised entirely of renewable energy sources, including wind, biomass, hydro and geothermal plants. A portion of the negotiated purchase price also supports the completion of "new renewable" sources - wind, biomass, geothermal and other renewable generation plants scheduled to be built in the future - thereby helping to expand the development of environmentally-preferred energy sources. None of the Clean Choice 100(tm) portfolio includes plants fueled by coal, oil, natural gas, nuclear resources, wood or wood waste from old growth forests, tire-burning or solid municipal waste.

Power from the Clean Choice 100™ generation sources flows into the transmission and distribution systems of the local utilities, where it necessarily mixes with power from other generation sources of these utilities and other power suppliers. The power Fetzer Vineyards receives is delivered via the distribution system of the utility Pacific Gas and Electric Company.

Clean Choice 100™ has been certified "Green-e" by an initiative of the nonpartisan Center for Resource Solutions, a San Francisco-based nonprofit organization. In addition, the National Resources Defense Council (NRDC) has named Clean Choice 100(tm) to its Environmentally Preferred Product list, as a result of an independent evaluation of green electricity being marketed in California. PG&E Energy Services' development of the Clean Choice(tm) product line, available to California residents since 1998, also led the American Lung Association to honor the company with an ENVY award last year.

"Fetzer Vineyards and PG&E Corporation are to be commended for their environmental leadership," said Ralph Cavanagh, senior attorney at the NRDC and vice chair of the Coalition on Energy Efficiency and Renewable Energy Technologies. "Both companies are setting a strong example through their support for renewable power and business practices that benefit the environment."

Fetzer's purchase of green power is the most recent example of its commitment to harvest and produce wine in an environmentally responsible way. With over 700 acres farmed organically, Fetzer is one of the largest growers of organic wine grapes in the world. Each year the winery recycles tons of waste paper, surplus cardboard, cans, glassware, wooden pallets and metals, and composts 10,000 tons of grape pomace. As a result, it has cut its trash by 93% between 1990 and 1997, eliminating the dumping of 1,580 cubic yards of landfill.

"We are committed to making high quality wines with as little impact on the planet as possible," explains Paul Dolan, president of Fetzer Vineyards. "This is the latest step towards our goal of total sustainability of our winery. The purchase of green power, coupled with continuing reductions in energy usage and conservation, will reduce our overall operating costs and benefit society as a whole. We're demonstrating that companies can reduce their impact on the environment while improving their bottom line."

PG&E Energy Services' contract with Fetzer is its first green power agreement with a major commercial business. It is just one example among hundreds of ongoing environmental projects involving PG&E Corporation and its affiliates, including the nation's first merchant wind power plant, under development by PG&E Generating Company in central New York State.

"Our contract with Fetzer is very much in keeping with PG&E Corporation's history and culture of environmental stewardship," said Scott Gebhardt, president and chief executive officer of PG&E Energy Services. "We're delighted to be able to link companies with non-polluting energy supplies and offer a product that supports the development of new renewable sources. Over time, we hope to be able to work with Fetzer on other environmentally-responsible energy projects as well."

San Francisco-based PG&E Energy Services provides businesses and institutions nationwide with comprehensive services to manage and reduce their energy use and related costs. As an energy alliance partner, the company creates long-term value for its clients through customized, integrated energy solutions, including energy efficiency retrofits, power quality solutions, competitively priced electricity and natural gas, regulatory and tariff consultation, billing options and other energy and information management programs, as well as capital and project financing. Currently PG&E Energy Services has service agreements - representing over $3 billion in revenues - with such firms as Marriott International, Motel 6, Jones Lang LaSalle, Hewlett-Packard, Burger King, American Stores, Rite-Aid, and many other companies.

PG&E Corporation is a diversified energy holding company with operations in 27 states and combined assets of $33 billion. The corporation markets energy services and products throughout North America through its National Energy Group, which includes PG&E Generating, PG&E Energy Trading, PG&E Gas Transmission and PG&E Energy Services. PG&E Corporation's businesses also include the California utility Pacific Gas and Electric Company, which delivers natural gas and electricity to one in every 20 Americans.

Fetzer Vineyards, located in southern Mendocino County, California, was founded by the Fetzer family in 1968. Fetzer's premium varietal wines, including Valley Oaks(tm) Cabernet Sauvignon, Eagle Peak(tm) Merlot, and Sundial(tm) Chardonnay are among the best selling wines in America. The winery was purchased by the Brown-Forman Corporation (NYSE: BFB) in 1992. Throughout the last decade, Fetzer has played a leading role in organic farming of vineyards and minimizing the winery's impact on the environment. The winery has won numerous awards for its outstanding reductions in landfill use, green construction practices, and recycling practices.

For more information on Fetzer Vineyards and PG&E Energy Services, please visit their websites at www.fetzer.com and www.pgees.com.

Contact:
Sid Goldstein 415/444-7441 or 800/945-9463, x7441
Sid_Goldstein@B-F.com
or Sara Moore Cummings
415/444-7426 or 800/945-9463, x7426
or Sara_Cummings@B-F.com