FROM:     ROBERT J. LOPATTO
RELEASE:  UPON RECEIPT
PHONE:    717-829-8814



                  PG ENERGY EXTENDS SELF TENDER OFFERS BY ONE DAY


         Wilkes-Barre, PA, April 8, 1996  --  PG Energy Inc.,  formerly known as
Pennsylvania Gas and Water Company, announced today  that  it  has  extended its
offer to purchase its Depositary Preferred Shares and 4.10% Cumulative Preferred
Stock by one business day in order to comply with regulations of the  Securities
and Exchange Commission.  The offer will now expire at 5:00 p.m.,  New York City
time, on Tuesday, April 9, 1996.

         PG Energy Inc. provides natural gas to approximately 142,000  customers
in ten counties in northeastern Pennsylvania.