text_combined: pacific gas electric company files chapter 11 reorganization forwarded miller hou ect 04 06 2001 03 25 pm jon cartwright 04 06 2001 11 37 02 rjf energy gram cc subject pacific gas electric company files chapter 11 reorganization san francisco business wire april 6 2001 pacific gas electric company utility unit pg e corporation nyse pcg today filed reorganization chapter 11 u bankruptcy code san francisco bankruptcy court company said taking action light unreimbursed energy costs increasing 300 million per month continuing cpuc decisions economically disadvantage company unmistakable fact negotiations governor gray davis representatives going nowhere neither pg e corporation subsidiaries including national energy group filed chapter 11 reorganization affected utility filing chose file chapter 11 reorganization affirmatively expect court provide venue needed reach solution thus far state state regulators unable achieve said robert glynn jr chairman pacific gas electric company regulatory political processes failed us turning court glynn added objective move chapter 11 reorganization process quickly possible without disruption operations inconvenience customers throughout crisis 20 000 employees remain committed providing safe reliable service 13 million californians depend us deliver gas electricity pacific gas electric company decided file protection chapter 11 primarily due failure state assume full procurement responsibility pacific gas electric net open position provided ablx result increasing financial exposure unreimbursed wholesale energy procurement costs utility estimates approximately 300 million per month impact actions california public utilities commission cpuc march 27 2001 april 3 2001 created new payment obligations company undermined ability return financial viability lack progress negotiations state provide recovery 9 billion wholesale power purchases made utility since june 2000 recoverable frozen rates adoption cpuc illegal retroactive accounting change would appear eliminate true uncollected wholesale costs addition despite pacific gas pacific gas electric would able enter long term power purchase contracts prices lower announced state state would almost exhaust state budget surplus spending billions dollars purchase power utility customers state would need issue billions dollars bonds cover power purchases state would advancing proposal spend billions dollars purchase state three investor owned utility electric transmission systems year state spent 3 billion power purchases cpuc arranged reimbursed expenses noted glynn contrast since june pacific gas electric company spent 9 billion excess revenues pay power customers exhausted ability continue borrowing progress plan reimburse expenditures provided law statements governor public officials since last september gave us reason believe solution could reached outside context chapter 11 would restore utility financial viability enable meet financial obligations equitably however statements followed constructive actions reorganization chapter 11 feasible means resolution utility utilize existing resources continue operating business bankruptcy including paying vendors suppliers full goods services received filing utility pay electric commodity suppliers provided law utility intends continue normal electric gas transmission distribution functions chapter 11 process employees continue paid health care plans benefits employees retirees continue utility qualified retirement plans retirees vested employees fully funded protected federal law notice media teleconference held today 10 15 pacific daylight time discuss announcement pacific gas electric company chairman robert glynn jr pacific gas electric company president ceo gordon r smith available questions dial number 888 469 2078 password access media investment community conference call discuss pacific gas electric company chapter 11 filing scheduled 11 15 pacific daylight time today real time webcast conference call accessed 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 elc mst ois