SAN FRANCISCO, April 23, 2002 --

ChevronTexaco (NYSE: CVX) today announced that Chevron Energy Solutions, a wholly-owned subsidiary, has acquired the federal business unit of Planergy International, a wholly-owned subsidiary of Xcel Energy Inc. (NYSE: XEL).

Based in St. Paul, Minnesota, Planergy's federal unit was operated by its subsidiary, Energy Masters International, which designs and implements energy and utility-related efficiency projects and integrated information systems for the federal government. Energy Masters is fully accredited by the U.S. Departments of Defense and Energy and has been awarded several Energy Savings Performance Contracts (ESPC), federal facility management contracts, Utility Energy Services subcontracts, and a General Services Administration Federal Energy Supply Schedule contract. Through these contract vehicles, the company helps many federal installations manage infrastructure requirements and comply with energy reduction mandates.

“The Energy Masters federal business unit complements our capabilities and geographic presence and expands our ability to serve federal agencies nationwide,” said Jim Davis, president of Chevron Energy Solutions. “Energy Masters has an impressive record of building relationships and effectively managing energy projects. We look forward to adding further support and resources to these capabilities to deliver even more value to customers.”

Energy Masters expects to transfer its federal contracts to Chevron Energy Solutions later this year, pending the government's transfer of key contracts to Chevron Energy Solutions. Throughout this transition Energy Masters' federal organization will remain intact and its operations will continue to be based in St. Paul.

San Francisco-based Chevron Energy Solutions is a subsidiary of ChevronTexaco, one of the world's largest and most competitive integrated energy companies. With 12 offices nationwide, Chevron Energy Solutions partners with businesses and institutions to lower their overall energy costs in ways that improve their financial performance. The company provides comprehensive solutions that help customers use less energy and pay less for energy, and ensure reliable, high quality power for critical operations. Its services include energy information management, energy efficiency upgrades, and power quality and reliability solutions, including distributed generation. Its customers include major companies in the retail, products manufacturing, and energy industries; schools, colleges, cities, and government agencies; and high-tech and other businesses that require uninterrupted power.

For more information about Chevron Energy Solutions, please visit its web site at www.chevronenergy.com.

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