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 PGE Energy Services to Provide Marriott International with Comprehensive Energy Management 
 
SAN FRANCISCO - July 12, 1999--PGE Energy Services, a retail unit of PGE Corporation (NYSE:PCG), (PGE Energy Services is not the same company as Pacific Gas and Electric Company, the utility) and The Marketplace by Marriott, the procurement arm of Marriott International, Inc. (NYSE:MAR), today announced a long-term contract for electricity supply and comprehensive energy management services at hundreds of Marriott-managed and franchised hotels, resorts, suites, distribution centers and senior living communities in California.

The five-year alliance is the first in the nation to provide total, integrated energy services to a broad base of lodging properties.

PGE Energy Services currently estimates electricity sales of more than $100 million over the term of the agreement.  According to PGE Energy Services, preliminary assessments of several facilities indicate a potential of $65 million in cost-effective energy efficiency projects at Marriott properties in California over the next several years. The electricity discount and facility improvements together are expected to lower each participating property�s energy costs by as much as 30 percent.

The Marketplace by Marriott, based in Bethesda, MD, was launched last year to provide one-stop shopping for a wide variety of commodities and services. The Marketplace provides both Marriott and non-Marriott customers with access to Marriott�s procurement expertise and buying leverage.  The alliance has already begun enrolling properties in its electricity supply program, which will generate immediate savings on their electric bills. In the coming months, PGE Energy Services will also evaluate participants� energy use patterns and examine their facilities for opportunities to reduce energy costs further by upgrading equipment or modifying operations. The services that can be provided to participants include:

  • Electric commodity - supplying electricity to all California facilities within service areas regulated by the California Public Utilities Commission;
  • Energy system auditing - identifying and analyzing conservation and efficiency opportunities through site surveys, bill analysis, energy and water data analysis and other methods;
  • Design of system improvements - determining cost-effective ways to reduce operating expenses, eliminate problems, and improve guest comfort;
  • Facility improvement implementation - managing the installation of lighting/HVAC controls and upgrades, water conservation measures, generators, voltage upgrade equipment, and other improvements to reduce costs and improve efficiencies;
  • Performance guarantees - providing guarantees of system performance and projected savings;
  • Information management - installing meters and then analyzing and reporting energy use using PGE Energy Services� software;
  • Rate analysis - reviewing current tariff schedules to optimize rates;
  • Financing - providing or arranging financing if requested.
This program will be offered immediately through The Marketplace by Marriott to the more than 130 Marriott and eligible non-Marriott businesses throughout California. Properties that are served by municipal utilities are not yet able to buy electricity from new power suppliers, but they will be able to take advantage of PGE Energy Services� energy efficiency improvement services. Over time, PGE Energy Services will explore additional opportunities at
Marriott-managed properties in other areas where direct access programs are currently unavailable.

�This is an excellent opportunity to offer energy savings for our current and potential Marketplace customers throughout California,� said Dennis Baker, executive vice president and general manager of The Marketplace by Marriott. �The alliance with PGE Energy Services allows us to provide a wide range of energy solutions that will reduce costs and enhance customer service.�

�Marriott is one of a growing number of visionary companies that understand how to gain a competitive advantage through value-added energy services,� said Scott Gebhardt, president and chief executive officer of PGE Energy Services. �By outsourcing their energy management to us, they not only reduce their facility costs, but also free up resources to focus on their primary business - world class lodging and hospitality.� Marriott International, based in Bethesda, MD, has more than 1,800 properties worldwide, including over 1,400 in the US. Marriott Lodging operates and franchises hotels under the Marriott, Ritz-Carlton, Renaissance, Residence Inn, Courtyard, TownePlace Suites, Fairfield Inn, SpringHill Suites and Ramada International brand names; develops and operates vacation ownership (timeshare) resorts under the Marriott Vacation Club International brand; and provides furnished corporate housing through its ExecuStay by Marriott division. Marriott Senior Living Services owns and manages about 100 senior living communities. Marriott Distribution Services distributes more than 3,000 food and related items from 15 US distribution centers to Marriott International operations and third-party customers.

San Francisco-based PGE Energy Services provides businesses and institutions nationwide with comprehensive services to manage and reduce their 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, discounted 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 PGE Energy Services has long-term service agreements representing over $3 billion in revenues.  For more information about PGE Corporation or PGE Energy Services, please visit our websites at www.pgecorp.com or www.pgees.com. For more information on The Marketplace by Marriott, please call toll free 877-TO-MARKET (877-866-2753).

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Contact:
PGE Energy Services
Diane Sable
415/733-4629
or Marriott International
Gordon Lambourne
301/380-1368
 
Also See: Texas Hotel & Motel Association and La Quinta Inns Team up to Save Energy / March 1999 
Inncom, in Partnership with Sun International, Provides Energy Management Monitoring Systems for Atlantis II Resort / May 1999 

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