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PG&E Donates $1 Million, 2 Natural Gas Cars to Support Engineering Students

November 28, 2007

MERCED - Representatives from Pacific Gas and Electric Company
visited the campus of the University of California, Merced, today
and left behind a few important things - a sign on an engineering
service learning laboratory, two natural-gas-powered cars and a
million-dollar check - to begin a legacy at the newest campus in
the UC system. The far-reaching gift from PG&E is part of the
utility’s five-year partnership with UC Merced’s School of
Engineering and will support its student recruitment and retention programs.

“The world needs engineers who are prepared to make a
difference. UC Merced is committed to educating those engineers,
and the support of PG&E greatly enhances our ability to do so,”
said UC Merced Chancellor Steve Kang, a former engineering dean
from UC Santa Cruz. “The programs supported by PG&E’s
million-dollar gift especially help us bring aspiring engineers
from diverse backgrounds into full participation in our engineering program.”

PG&E Senior Vice President Nancy McFadden presented UC
Merced with a $1 million check and unveiled a new sign naming the
PG&E Engineering Service Learning Laboratory.

“PG&E is proud to partner with UC Merced to support and
inspire future engineers who will lead advancements in energy
efficiency, renewable power, and technology to promote a healthy
environment,” said McFadden. “This donation is part of our
continued commitment to support environmental leadership and the
economic vitality of the Central Valley communities we are honored
to serve.”

PG&E’s $1 million donation will be provided to UC Merced’s
School of Engineering over the course of the five-year partnership.
The gift will serve to enhance student recruitment and retention by
expanding the school’s Engineering Service Learning Laboratory,
which provides a physical home base for students working on
cooperative engineering projects with community non-profit groups,
such as A Woman’s Place Merced, the Merced County Office of
Education and the California State Mining and Mineral Museum in
Mariposa. Service learning is a required aspect of UC Merced’s
engineering curriculum and helps retain students by facilitating
hands-on learning early in the engineering education process.

PG&E also presented the university with two blue-flamed,
custom-wrapped Honda Civics powered by natural gas. The vehicles
will be incorporated into the university’s fleet and will be used
by engineering students traveling to off-campus service learning
projects and professional conferences. PG&E will provide a
natural gas pump on campus to fuel the vehicles. Natural gas is one
of the cleanest burning alternative transportation fuels available
today, reducing greenhouse gas emissions an average of 25 percent
over traditional petroleum-fueled vehicles.

UC Merced students joined the guests assembled for the
announcement ceremony and spoke afterward at a celebratory
luncheon. They all mentioned how PG&E’s gift will make a
difference in their engineering studies - supporting student
organizations and projects as well as providing individual
financial support for outstanding students.

“It is a magnificent statement to our students that a company
with the stature of PG&E cares so deeply about their success as
future engineering leaders of tomorrow,” said Dean Jeff Wright of
the School of Engineering. “This gift will enable us to expand our
support of their professional education and to provide them
hands-on learning experiences that would otherwise not be possible.”

PG&E has a long history of making charitable grants tailored
to the wide variety of needs of the communities it serves. The
company’s broader program of support to communities includes cash
grants, in-kind contributions, and volunteers for community-based
nonprofit organizations, and for schools and other governmental
programs throughout northern and central California. This year,
PG&E is increasing its support to charitable nonprofit
organizations by 25 percent to $18.3 million - the largest
charitable commitment in the company’s history. All charitable
contributions are entirely funded by the company’s shareholders,
and the level of charitable giving does not affect gas and electric rates.

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For more information about Pacific Gas and Electric Company,
please visit the company’s web site at
www.pge.com

For more information about UC Merced, please visit
www.ucmerced.edu