PG&E Files Chapter 11; Cites Unreimbursed Costs
SAN FRANCISCO--Pacific Gas and Electric, California's largest utility, filed for Chapter 11 federal bankruptcy protection today despite months of efforts by state officials to bail out the cash-starved company.
The company, a subsidiary of PG&E Corp., says it had run up an $8.9 billion deficit buying electricity as of Feb. 28. Along with other California utilities, it has been pinched by skyrocketing wholesale power costs and the state's 1996 deregulation law that prevents it from fully passing those costs on to customers.
As of March 29, the utility-- which supplies power to 13 million Californians-- had $2.6 billion in cash and outstanding bills of $4.4 billion.
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