Bankruptcy

In another sign PG&E has fully cleared its post-Chapter 11 bankruptcy, utility officials lowered the amount of the energy recovery bonds that will be sold later this year by more than $300 million, meaning they will total about $800 million rather than the previously estimated $1.1 billion. A series of settlements of suppliers’ outstanding claims against the utility has permitted the reduction.

While characterizing the Pacific Gas and Electric Co. three-year Chapter 11 bankruptcy process as a “political choice” made by a solvent company, a PG&E Corp. executive last Monday chastised the former PG&E merchant energy unit for making a lot of bad market decisions.

While characterizing the Pacific Gas and Electric Co. three-year Chapter 11 bankruptcy process as a “political choice” made by a solvent company, a PG&E Corp. executive Monday chastised the former PG&E merchant energy unit for making a lot of bad market decisions.

As a continuation of initiatives begun during NorthWestern Corp.’s recent Chapter 11 bankruptcy process, local government-backed pubic power advocates in Montana and South Dakota decided late last month to join forces in ongoing efforts to structure a public-sector purchase of the company, whose principal electric and natural gas utility operations are concentrated in those two states. The company had no comment since there is no formal proposal in play, a spokesperson said Tuesday.

As a continuation of initiatives begun during NorthWestern Corp.’s recent Chapter 11 bankruptcy process, local government-backed pubic power advocates in Montana and South Dakota decided late last month to join forces in ongoing efforts to structure a public-sector purchase of the company, whose principal electric and natural gas utility operations are concentrated in those two states. The company had no comment since there is no formal proposal in play, a spokesperson said Tuesday.

On the eve of emerging from Chapter 11 bankruptcy, Pacific Gas and Electric Co. announced last Wednesday it made 2003 local franchise fee and surcharge payments totaling $42 million in 49 California counties in which it operates. The payments, which were nearly equal for natural gas and electric facilities, represent a 22% increase over the combination utility’s 2002 payments. The fees are a percentage of gross receipts on the utility’s system that are paid to cities and counties for the “right to use public streets” in which to run gas and electric service pipes and wires, PG&E’s utility said in its announcement. The franchise fee surcharges are a percentage of the transportation and energy costs to customers choosing to buy their energy from third parties, or so-called “exit fees.”

On the eve of emerging from Chapter 11 bankruptcy, Pacific Gas and Electric Co. announced Wednesday it made 2003 local franchise fee and surcharge payments totaling $42 million in 49 California counties in which it operates. The payments, which were nearly equal for natural gas and electric facilities, represent a 22% increase over the combination utility’s 2002 payments.

Nevada Power Co. last Wednesday filed a federal lawsuit against Southern Nevada Water Authority (SNWA), several officials with the Colorado River Commission (CRC) and a former Enron Corp. trader in which Nevada Power alleges that the defendants manipulated western power markets in 2000-2001 at the expense of the Nevada-based electric utility.

Piggybacking on the electricity rate cut from its bankruptcy settlement this month, Pacific Gas and Electric Co. announced Wednesday that its retail natural gas utility bills will drop 33.8% in March due to a combination of expected lower demand and declining wholesale prices. The average bill of $68 in February will drop to $45.78 this month, the PG&E utility said.