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11 July 2006 -- Pacific Gas and Electric Company (PG&E) and Microgy, Inc. today announced an agreement that allows Microgy to use PG&E's natural gas transmission network to distribute natural gas produced from waste to markets in California and the West.

Microgy, a subsidiary of Environmental Power Corp., plans to generate natural gas from dairy and other wastes using its proprietary biogas production technology. Under the terms of the agreement, PG&E will work with Microgy to interconnect these facilities with PG&E's extensive network of natural gas pipelines.

"California is the largest dairy producer and the largest energy consumer in the United States. This interconnection agreement will provide California with access to a new gas supply from our projects, said Kam Tejwani, CEO, Environmental Power.

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