PG&E Files for Bankruptcy

April 11, 2001
/ Print / Reprints /
/ Text Size+
SAN FRANCISCO, CA — Pacific Gas and Electric Co., the utility unit of PG&E Corp., has filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code.

The company said it has taken this action in light of its unreimbursed energy costs, which are now increasing by more than $300 million per month, continuing California Public Utilities Commission (CPUC) decisions that economically disadvantage the company, and because negotiations with Governor Gray Davis and his representatives have stalled.

“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. “The regulatory and political processes have failed us, and now we are turning to the court.”

He 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.” The utility serves about 13 million people in northern and central California.

Since June, Glynn stated, the 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.” Reorganization via Chapter 11 “is now the most feasible means of resolution.”

The bankruptcy filing occurred just a day after Governor Davis proposed a plan to give utilities a share of a record rate increase that had been approved and to continue negotiating the purchase of utility transmission lines by the state.

Publication date: 04/10/2001

Did you enjoy this article? Click here to subscribe to The NEWS Magazine

Recent Articles by Greg Mazurkiewicz

You must login or register in order to post a comment.



Image Galleries

2014 Energy Efficiency Forum

Highlights from the 25th annual Energy Efficiency Forum in Washington, D.C.


NEWSMakers: Jeremy Begley

Jeremy Begley, home-performance specialist and Web and social media manager with National Heating and Air Conditioning Co. in Cincinnati discusses how and why you should add home-performance philosophies to your contracting repertoire. Posted on Sept. 12.

More Podcasts


NEWS 09-15-14 cover

2014 September 15

Check out the weekly edition of The NEWS today!

Table Of Contents Subscribe

Venting R-22

The NEWS reported that a man received prison time for venting R-22. Should EPA step up enforcement?
View Results Poll Archive


2014 National Plumbing & HVAC Estimator

Every plumbing and HVAC estimator can use the cost estimates in this practical manual!

More Products

Clear Seas Research


Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.


Magazine image
Register today for complete access to Get full access to the latest features, Extra Edition, and more.


facebook icontwitter iconyoutube iconLinkedIn i con