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: PACIFIC GAS AND ELECTRIC COMPANY RECEIVES COURT APPROVAL
TO PAY CERTAIN PRE-PETITION CLAIMS
Allowed Claims Under $5,000,
Valid Mechanics' Lien Claims & Valid Reclamation Claims Will Be
Paid On or Before July 31, 2002
SAN FRANCISCO - Pacific
Gas and Electric Company today received approval from the U.S. Bankruptcy
Court to pay certain valid pre-petition claims, including claims
for amounts of $5,000 or less (or claims voluntarily reduced by
the claimant to $5,000), mechanics' lien claims and reclamation
claims. These payments will be made on or before July 31, 2002.
In PG&E's bankruptcy case,
more than 13,000 proofs of claims have been filed. The utility estimates
over 4,000, or almost one-third of the claims, are for $5,000 or
less. Many of the creditors in this category are individuals or
small businesses. Claims filed for amounts under $5,000 total approximately
There are approximately
50 mechanics' lien claims filed against PG&E, totaling approximately
$10.2 million. A mechanics' lien claim is a claim secured by a statutory
lien against real property on which the claimant has provided labor,
services, equipment or materials.
About 50 reclamation claims
have been filed for a total of approximately $5.5 million. These
claims are for the value of goods delivered to the utility immediately
prior to or shortly after the filing of the Chapter 11 petition
on April 6, 2001.
PG&E estimates it will pay
no more than $22.4 million to pay in full all valid claims in these
By paying these claims,
PG&E reduces its ongoing liability for post-petition interest related
to these claims. In addition, this effort will streamline the claims
resolution process and allow the utility to focus its resources
on the remaining larger, more complex claims.
All undisputed claims of
$5,000 or less, mechanics' lien claims and reclamation claims will
be paid on or before July 31, 2002, with interest accrued at the
Federal Judgment Rate in effect as of the date of PG&E's bankruptcy
petition, on the allowed amount of the claim from April 6, 2001
through June 30, 2002.
For disputed claims, upon
resolution of the claim by either a Court order or settlement, PG&E
will pay the allowed amount of those claims plus interest accrued
at the Federal Judgment Rate from April 6, 2001, through the date
of the payment.