EDITORS: Please do not use
"Pacific Gas and Electric" or "PG&E" when
referring to PG&E Corporation or its National Energy Group.
The PG&E National Energy Group is not the same company as Pacific
Gas and Electric Company, the utility, and is not regulated by the
California Public Utilities Commission. Customers of Pacific Gas
and Electric Company do not have to buy products or services from
the National Energy Group in order to continue to receive quality
regulated services from Pacific Gas and Electric Company.
UPDATE: PG&E ISSUES STATEMENT FOLLOWING INTEREST RATE AGREEMENTS
WITH CALPINE AND GWF POWER SYSTEMS
SAN FRANCISCO - Pacific
Gas and Electric Company today announced it has reached an agreement
with Calpine Corporation and GWF Power Systems to set a five percent
interest rate for their pre-petition debt.
In July, the utility assumed
more than 130 of its Qualifying Facility (QF) contracts and agreed
to negotiate an appropriate interest rate with the QFs.
The settlement with Calpine
and GWF Power Systems allows Pacific Gas and Electric Company to
make monthly principal and interest payments beginning on December
31, 2001, for the next 12 months.
Pacific Gas and Electric
Company said "it believes today's agreement with Calpine and GWF
can serve as a framework for discussions with other QFs. This ensures
our customers will continue to have a reliable source of power at
The utility has 13 Calpine
QF contracts that provide a total of 450 megawatts of delivered
power. The pre-petition amount owed to Calpine was approximately
GWF Power Systems delivers
about 125 megawatts through its 7 contracts with the company, and
was owed $61.7 million.
These agreements are subject
to Bankruptcy Court approval. Pacific Gas and Electric Company has
about 300 QF contracts, which provide about 2,400 megawatts on an
annual basis. When it filed for Chapter 11 on April 6, the utility
owed approximately $1 billion to its QFs.