Pacific Gas & Electric files for Chapter 11 reorganization

Ending months of speculation, California' Pacific Gas & Electric Co., the utility subsidiary of PG&E Corp., Friday filed for reorganization under Chapter 11 of the US Bankruptcy Code in San Francisco bankruptcy court. The parent company nor any other subsidiaries, including its National Energy Group, have filed for Chapter 11 or are affected by the utility filing, the company said.

April 6, 2001

By the OGJ Online Staff

HOUSTON, Apr. 6�Ending months of speculation, California' Pacific Gas & Electric Co., the utility subsidiary of PG&E Corp., Friday filed for reorganization under Chapter 11 of the US Bankruptcy Code in San Francisco bankruptcy court.

The company said in a statement the action was taken because its unreimbursed energy are rising at a rate of $300 million/month, regulatory decisions that put the company at an economic disadvantage, and the "now unmistakeable fact that negotiations with [California] Gov. Gray Davis and his representatives are going nowhere."

The parent company nor any other subsidiaries, including its National Energy Group, have filed for Chapter 11 or are affected by the utility filing, the company said.