Chapter 11 Update: Pacific Gas and Electric Company Reaches Long-term Agreements With 131 QFs; Deals Provide Reliable Power to Customers at Reasonable Prices.Business Editors SAN FRANCISCO--(BUSINESS WIRE)--July 19, 2001 Pacific Gas and Electric Company
The Pacific Gas and Electric Company (PG&E) , (NYSE: PCG), is the utility that provides natural gas and electricity to most of Northern California. has signed five-year agreements with 131 of its qualifying facilities (QFs), ensuring the utility and its customers receive a reliable supply of electricity at an average energy price of 5.37 cents per kilowatt-hour kil·o·watt-hour n. Abbr. kWh or kW-hr A unit of electric energy equal to the work done by one kilowatt acting for one hour. . Under the terms of the agreements, Pacific Gas and Electric Company will assume the QF contracts. The company will pay the pre-petition debt on these 131 QF contracts -- totaling $740 million -- on the effective date of the plan of reorganization. The total amount the company owed to QFs when it filed for Chapter 11 was approximately $1 billion. For certain of these QFs, if the effective date has not occurred by July July: see month. 15, 2003, the company will pay 2% of the principal amount of the pre-petition debt per month until the effective date of the plan of reorganization or until July 15, 2005, when it will pay the remaining pre-petition debt. By locking into the average fixed cost, Pacific Gas and Electric Company will help protect its customers from the price fluctuations in the wholesale market. A recent CPUC CPUC California Public Utilities Commission CPUC Current Procurement Unit Cost decision (D.01-06-015) allowed QFs to enter into long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. contracts at an average energy price of 5.37 cents per kilowatt-hour. "We are pleased to have reached agreements with more than 130 of our small power producers," said Joe Henri Hen·ri , Robert 1865-1929. American painter whose realistic works aligned him with a group of painters, known as the Eight, or the Ashcan School, who decried the artificiality and sentimentality of American painting at the turn of the century. , Pacific Gas and Electric Company's director of electric portfolio management. "This will help bring stability to the market and allow our customers to receive reliable power at reasonable costs." The 131 QF contracts represent nameplate capacity of 2,950 megawatts compared to PG&E's total QF contract nameplate capacity of 4,400 megawatts. On an average annual basis, the company receives approximately 2,400 megawatts from all of its QFs, and the 131 QFs represent approximately 1600 megawatts of the total amount. Each of the agreements requires formal approval from the U.S Bankruptcy Court bankruptcy court n. the specialized Federal court in which bankruptcy matters under the Federal Bankruptcy Act are conducted. There are several bankruptcy courts in each state, and each one's territory covers several counties. . Several of the agreements have already been approved, and the company will be making filings for the remainder in the near future. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion