One of the largest combination natural gas distributors and electric utilities in the United States has become a member of Bermuda-based Oil Insurance Limited.

Douglas A. Kline, senior vice president and chief operating officer of OIL, said the decision by California-based Pacific Gas & Electric to become OIL?s 84th shareholder ?validates the OIL product for the provision of large and stable blocks of capacity and indicates that the mutual system continues to be a highly attractive alternative for buyers of insurance?.

Pacific Gas and Electric Company has approximately 14 million customers throughout a 70,000 square-mile service area in northern and central California.

OIL commenced operations as a mutual insurance company in Bermuda in 1971 to service the needs of 16 founding petroleum companies at a time when the commercial markets had ceased providing their industry with adequate insurance coverage limits. OIL later expanded its eligibility to embrace the broader energy field and now has 84 members across Europe, Canada, Australia, South Africa, the Middle East, Latin America, the Caribbean and the United States. On a global basis, the total gross assets of OIL?s 84 shareholders are $2 trillion.

The coverages and limits provided by OIL form the cornerstone of most members? insurance programmes. Participants in OIL have available limits of up to $250 million per occurrence with no annual aggregate. The limits insure against international catastrophe exposures inherent in energy industry operations.