pacific gas and electric company files for chapter 11 reorganization
- - - - - - - - - - - - - - - - - - - - - - forwarded by don miller / hou / ect on 04 / 06 / 2001 03 : 25 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
jon cartwright on 04 / 06 / 2001 11 : 37 : 02 am
to : " ' rjf energy - gram ' "
cc :
subject : pacific gas and electric company files for chapter 11 reorganization
san francisco - - ( business wire ) - - april 6 , 2001 - - pacific gas and
electric company , the utility unit of pg & e corporation ( nyse : pcg ) ,
today filed for reorganization under chapter 11 of the u . s . bankruptcy
code in san francisco bankruptcy court . the company said it is taking
this action in light of its unreimbursed energy costs which are now
increasing by more than $ 300 million per month , continuing cpuc
decisions that economically disadvantage the company , and the now
unmistakable fact that negotiations with governor gray davis and his
representatives are going nowhere .
neither pg & e corporation nor any of its other subsidiaries ,
including its national energy group , have filed for chapter 11
reorganization or are affected by the utility ' s filing .
" we chose to file for chapter 11 reorganization affirmatively
because we expect the court will provide the venue needed to reach a
solution , which thus far the state and the state ' s regulators have
been unable to achieve , " said robert d . glynn , jr . , chairman of
pacific gas and electric company . " the regulatory and political
processes have failed us , and now we are turning to the court . "
glynn added , " our objective is to move through the chapter 11
reorganization process as quickly as possible , without disruption to
our operations or inconvenience to our customers . throughout this
crisis , our 20 , 000 employees have been and remain committed to
providing safe and reliable service to the 13 million californians who
depend on us to deliver their gas and electricity . "
pacific gas and electric company decided to file for the
protection of chapter 11 primarily due to :
- - failure by the state to assume the full procurement
responsibility for pacific gas and electric ' s " net open
position " as was provided under ablx . this has the result of
increasing financial exposure to unreimbursed wholesale energy
procurement costs , which the utility estimates to be
approximately $ 300 million or more per month .
- - the impact of actions by the california public utilities
commission ( cpuc ) on march 27 , 2001 , and april 3 , 2001 , that
created new payment obligations for the company and undermined
its ability to return to financial viability .
- - lack of progress in negotiations with the state to provide
recovery of $ 9 billion in wholesale power purchases made by
the utility since june 2000 , which have not been recoverable
in frozen rates .
- - the adoption by the cpuc of an illegal and retroactive
accounting change that would appear to eliminate our true
uncollected wholesale costs .
" in addition , despite pacific gas
- - pacific gas and electric would have been able to enter into
long - term power purchase contracts at prices lower than those
announced by the state ;
- - the state would not have had to almost exhaust the state ' s
budget surplus by spending billions of dollars to purchase
power for the utility ' s customers ;
- - the state would not now need to issue billions of dollars in
bonds to cover these power purchases ; and
- - the state would not now be advancing a proposal to spend
billions of dollars to purchase the state ' s three
investor - owned utility ' s electric transmission systems .
" this year , the state has spent more than $ 3 billion on power
purchases and , with the cpuc , has arranged to be reimbursed for these
expenses , " noted glynn . " in contrast , since june pacific gas and
electric company has spent $ 9 billion in excess of revenues to pay for
power for its customers and exhausted its ability to continue
borrowing , but there has been no progress on a plan to reimburse it
for those expenditures as provided by law .
" statements by the governor and other public officials since last
september gave us reason to believe that a solution could be reached
outside the context of chapter 11 that would restore the utility ' s
financial viability and enable it to meet its financial obligations
equitably . however , these statements have not been followed up by
constructive actions , and a reorganization in chapter 11 is now the
most feasible means of resolution . "
the utility will utilize existing resources to continue operating
its business during bankruptcy , including paying vendors and suppliers
in full for goods and services received after the filing . the utility
will pay electric commodity suppliers as provided by law . the utility
intends to continue normal electric and gas transmission and
distribution functions during the chapter 11 process . employees will
continue to be paid . health care plans and other benefits for
employees and most retirees will continue . the utility ' s qualified
retirement plans for retirees and vested employees are fully funded
and protected by federal law .
notice
a media teleconference will be held today at 10 : 15 a . m . pacific
daylight time to discuss this announcement . pacific gas and electric
company chairman robert d . glynn , jr . , and pacific gas and electric
company president and ceo gordon r . smith will be available for
questions . the dial - in number is 888 / 469 - 2078 , and the password for
access is " media . " an investment community conference call to discuss
pacific gas and electric company ' s chapter 11 filing has been
scheduled for 11 : 15 a . m . pacific daylight time today . a real - time
webcast of this conference call can be accessed at www . pgecorp . com .
- - 30 - - kwp / sf *
contact : pgpcg
06 - apr - 2001 16 : 34 : 42 gmt
source bw - business wire
categories :
mst / r / us / ca mst / i / elc mst / i / ois
pacific gas and electric company files for chapter 11
reorganization
- - - - - - - - - - - - - - - - - - - - - - forwarded by don miller / hou / ect on 04 / 06 / 2001 03 : 25 pm - - - - - - - - - - - - - - - - - - - - - - - - - - -
jon cartwright on 04 / 06 / 2001 11 : 37 : 02 am
to : " ' rjf energy - gram ' "
cc :
subject : pacific gas and electric company files for chapter 11 reorganization
san francisco - - ( business wire ) - - april 6 , 2001 - - pacific gas and
electric company , the utility unit of pg & e corporation ( nyse : pcg ) ,
today filed for reorganization under chapter 11 of the u . s . bankruptcy
code in san francisco bankruptcy court . the company said it is taking
this action in light of its unreimbursed energy costs which are now
increasing by more than $ 300 million per month , continuing cpuc
decisions that economically disadvantage the company , and the now
unmistakable fact that negotiations with governor gray davis and his
representatives are going nowhere .
neither pg & e corporation nor any of its other subsidiaries ,
including its national energy group , have filed for chapter 11
reorganization or are affected by the utility ' s filing .
" we chose to file for chapter 11 reorganization affirmatively
because we expect the court will provide the venue needed to reach a
solution , which thus far the state and the state ' s regulators have
been unable to achieve , " said robert d . glynn , jr . , chairman of
pacific gas and electric company . " the regulatory and political
processes have failed us , and now we are turning to the court . "
glynn added , " our objective is to move through the chapter 11
reorganization process as quickly as possible , without disruption to
our operations or inconvenience to our customers . throughout this
crisis , our 20 , 000 employees have been and remain committed to
providing safe and reliable service to the 13 million californians who
depend on us to deliver their gas and electricity . "
pacific gas and electric company decided to file for the
protection of chapter 11 primarily due to :
- - failure by the state to assume the full procurement
responsibility for pacific gas and electric ' s " net open
position " as was provided under ablx . this has the result of
increasing financial exposure to unreimbursed wholesale energy
procurement costs , which the utility estimates to be
approximately $ 300 million or more per month .
- - the impact of actions by the california public utilities
commission ( cpuc ) on march 27 , 2001 , and april 3 , 2001 , that
created new payment obligations for the company and undermined
its ability to return to financial viability .
- - lack of progress in negotiations with the state to provide
recovery of $ 9 billion in wholesale power purchases made by
the utility since june 2000 , which have not been recoverable
in frozen rates .
- - the adoption by the cpuc of an illegal and retroactive
accounting change that would appear to eliminate our true
uncollected wholesale costs .
" in addition , despite pacific gas
- - pacific gas and electric would have been able to enter into
long - term power purchase contracts at prices lower than those
announced by the state ;
- - the state would not have had to almost exhaust the state ' s
budget surplus by spending billions of dollars to purchase
power for the utility ' s customers ;
- - the state would not now need to issue billions of dollars in
bonds to cover these power purchases ; and
- - the state would not now be advancing a proposal to spend
billions of dollars to purchase the state ' s three
investor - owned utility ' s electric transmission systems .
" this year , the state has spent more than $ 3 billion on power
purchases and , with the cpuc , has arranged to be reimbursed for these
expenses , " noted glynn . " in contrast , since june pacific gas and
electric company has spent $ 9 billion in excess of revenues to pay for
power for its customers and exhausted its ability to continue
borrowing , but there has been no progress on a plan to reimburse it
for those expenditures as provided by law .
" statements by the governor and other public officials since last
september gave us reason to believe that a solution could be reached
outside the context of chapter 11 that would restore the utility ' s
financial viability and enable it to meet its financial obligations
equitably . however , these statements have not been followed up by
constructive actions , and a reorganization in chapter 11 is now the
most feasible means of resolution . "
the utility will utilize existing resources to continue operating
its business during bankruptcy , including paying vendors and suppliers
in full for goods and services received after the filing . the utility
will pay electric commodity suppliers as provided by law . the utility
intends to continue normal electric and gas transmission and
distribution functions during the chapter 11 process . employees will
continue to be paid . health care plans and other benefits for
employees and most retirees will continue . the utility ' s qualified
retirement plans for retirees and vested employees are fully funded
and protected by federal law .
notice
a media teleconference will be held today at 10 : 15 a . m . pacific
daylight time to discuss this announcement . pacific gas and electric
company chairman robert d . glynn , jr . , and pacific gas and electric
company president and ceo gordon r . smith will be available for
questions . the dial - in number is 888 / 469 - 2078 , and the password for
access is " media . " an investment community conference call to discuss
pacific gas and electric company ' s chapter 11 filing has been
scheduled for 11 : 15 a . m . pacific daylight time today . a real - time
webcast of this conference call can be accessed at www . pgecorp . com .
- - 30 - - kwp / sf *
contact : pgpcg
06 - apr - 2001 16 : 34 : 42 gmt
source bw - business wire
categories :
mst / r / us / ca mst / i / elc mst / i / ois