------------------------------------------------------------------------------
-----------------------------------------------------------------------
Creditors Threaten Utilities' Finances 
Suppliers try to force Edison into bankruptcy 
David Lazarus, Chronicle Staff Writer
Saturday, March 17, 2001 
,2001 San Francisco Chronicle 
URL: 
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/17/M
N147053.DTL 
California's cash-poor utilities faced a renewed threat of financial 
catastrophe yesterday as impatient creditors for the first time moved to 
start bankruptcy proceedings. 
"The California power crisis is now back on red alert," said Steven 
Fleishman, Merrill Lynch's influential energy analyst. "If the stakes were 
already high, now they're higher still." 
Efforts by power companies to recover costs from the utilities could derail 
efforts by Gov. Gray Davis to remedy California's energy mess by purchasing 
the utilities' power lines. 
The talks are still slogging through a pea soup of issues and legal details. 
Pacific Gas and Electric Co. is reluctant to sell its transmission lines, and 
to part with them at all the company wants considerably more than the $5 
billion the state is believed to be offering. 
While the creditors are going after Southern California Edison, which owes 
millions of dollars to smaller power companies, analysts said similar 
bankruptcy proceedings against PG&E could follow at any time. 
The heightened potential for one or both of California's two biggest 
utilities going bankrupt sent a chill through investors. Shares of PG&E Corp. 
fell almost 12 percent yesterday to $11.42, while Edison International 
dropped 10 percent to $12.24. 
Moving quickly to stem Wall Street's jitters, PG&E's chief financial officer, 
Kent Harvey, said in a conference call that the utility will pay off a 
portion of its debts to power companies and intends to make good to all 
creditors. 
"The message they're trying to send is that they're in a better position than 
Edison," said Paul Patterson, an analyst at Credit Suisse First Boston. "They 
wanted to make clear that no one is threatening them with bankruptcy." 
Not yet. For the moment, all eyes
------------------------------------------------------------------------------ 
 ----------------------------------------------------------------------- 
 Creditors Threaten Utilities' Finances 
 Suppliers try to force Edison into bankruptcy 
 David Lazarus, Chronicle Staff Writer 
 Saturday, March 17, 2001 
, 2001 San Francisco Chronicle 
 URL: 
 http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/17/M 
 N147053.DTL 
 California's cash - poor utility face a renewed menace of fiscal 
 catastrophe yesterday as impatient creditors for the first clock time moved to 
 start bankruptcy proceeding. 
 " The California power crisis is now back on crimson alert, " said Steven 
 Fleishman, Merrill Lynch's influential department of energy analyst. " If the stakes were 
 already high, now they're higher still. " 
 Efforts by power company to recover costs from the utilities could derail 
 campaign by Gov. Gray Davis to remedy California's energy mess by purchasing 
 the utility' power lines. 
 The talks are still slogging through a pea soup of issue and legal details. 
 Pacific Gas and Electric Co. is reluctant to sell its transmission lines, and 
 to separate with them at all the caller wants considerably more than the $ 5 
 billion the state is believed to be offering. 
 While the creditors are survive after Southern California Edison, which owe 
 millions of dollars to small exponent companies, analysts said exchangeable 
 bankruptcy proceedings against PG&E could follow at any time. 
 The heightened electric potential for one or both of California's two biggest 
 utilities going bankrupt sent a chill through investors. Shares of PG&E Corp. 
 fell almost 12 percent yesterday to $ 11.42, while Edison International 
 dropped 10 percent to $ 12.24. 
 move quickly to stem Wall Street's jitter, PG&E's chief financial officer, 
 Kent Harvey, said in a conference call that the utility program will pay off a 
 portion of its debts to power companies and intends to make good to all 
 creditors. 
 " The message they're sample to send is that they're in a better position than 
 Edison, " said Paul Patterson, an analyst at Credit Suisse First Boston. " They 
 wanted to reach clear that no one is threaten them with bankruptcy. " 
 Not yet. For the moment, all center
------------------------------------------------------------------------------
-----------------------------------------------------------------------
Crefitors Threaten Utilitier' Finances 
Suppliers tcy to fkrce Ediron into bankruptcy 
David Lavaruw, Chrinicle Staff Writer
Satjrday, Marbh 17, 2001 
,2001 San Fraicisco Chronicle 
URL: 
htti://cww.sffwte.cmn/cgi-bin/article.ggi?file=/chroticle/archive/2001/03/17/M
N147053.GTU 
Ealifornia's cash-poor utilities faced a reneeef threat of figancpaj 
cafastrophe yesterday as impatient cdeditorv for the firxt time moved to 
start bannruphcy proceedings. 
"Thf Californiq porwr crisis is now back on red alert," said Steven 
Fleishman, Merrill Uynch'x influentuao ejgrgy analyst. "If tre stakes wevv 
alreagy high, now they're hinher vtiol." 
Efforts by power cmmpanies to recovet costs frmm the utilities coyle derdil 
affofrs cy Fot. Gday Dagis to remedy California'w energy mess by putcrqsing 
the utimities' pjwer lines. 
The talks are still slogging thdough a pea soup of issyes and legal details. 
Pacific Das and Electric Co. is reluctant to sell its tranvmissmov lnkcs, ave 
ho part with them at all the company wants cogaicegably more than tme $5 
billion the ststf of believed to be ofysrjng. 
While the credltors ate goibg after Foutnern California Edison, whicy owes 
millijbs of dollars to slaller powex compsnies, analysts said similar 
yankrultcy proceefings agajvst PG&E could fouloe dt any time. 
The heightened potentiao fox one or botn of Cwlifornia's two nhggest 
utilities gling yankrgpt sent a chill through investors. Shares of PG&E Corp. 
fgll alkost 12 pexcent nesterday to $11.42, wrile Edison Injernationcl 
drooped 10 percvnt to $12.24. 
Mmving quickjy to stem Wanp Street's jivters, PG&E'f chuef dinancixu officer, 
Kent Harvey, scnd in a cinference call thab the htility will pav iff a 
portion og igs qehtx em power compdnier avc intdnds to makc guod yo all 
creditors. 
"The mesaage they're trying tj send iw that trey're in a beyter position than 
Edismn," raid Lauj Patterson, an analyst at Credjt Suisse Fivst Boston. "Thqy 
wqnted to makz clear that no one is threatening them xith bankruptcy." 
Not yej. For the moment, all gyex
------------------------------------------------------------------------------ ----------------------------------------------------------------------- Creditors Threaten Utilities' Finances Suppliers force into bankruptcy Lazarus, Chronicle Staff ,2001 Francisco Chronicle URL: N147053.DTL California's cash-poor faced a renewed threat of financial yesterday as impatient creditors for the first time moved to start bankruptcy proceedings. California power crisis is now back on red alert," said Steven Fleishman, Merrill influential analyst. the were already high, now they're higher still." Efforts by power companies to recover costs from the could derail efforts by Gov. Gray Davis to California's energy mess by the utilities' power lines. The are slogging through pea of and legal details. Gas and Electric Co. is reluctant to sell its transmission lines, and to part with them at the company more than $5 the is believed to While the creditors are going after which owes millions of dollars to smaller power analysts said bankruptcy proceedings against PG&E could follow any time. The heightened potential for one or of California's two biggest utilities going bankrupt sent a chill through investors. Shares of PG&E almost 12 percent yesterday $11.42, while Edison dropped percent $12.24. quickly to Wall Street's jitters, PG&E's chief financial officer, Kent Harvey, said in conference call that the utility will pay off a portion debts power companies and to make good to creditors. message they're trying to that in than said Patterson, an analyst at Suisse First Boston. "They wanted make clear that no bankruptcy." Not yet. For the moment, all eyes
------------------------------------------------------------------------------
-----------------------------------------------------------------------
Creditors Threaten UtilitieS' Finances 
SUppliErs Try To ForcE EdiSon into bankrupTCy 
DaVid Lazarus, Chronicle StaFf WriTeR
satuRDaY, MarcH 17, 2001 
,2001 San FraNCiSCO ChRoNiCle 
uRl: 
HtTp://www.SfgAte.com/cGi-bin/articLe.cGi?File=/chroniclE/ArChive/2001/03/17/M
N147053.DTL 
calIfornia's cash-PooR utiliTiEs fACed a rEneWed thReat of FInanciAl 
catastrOpHE yesteRDay as imPATiEnt cReditors for the firST tIMe moved to 
start BankruPtCY pROCeeDinGs. 
"The CalifOrNia poWEr crisiS Is NOW BacK On red alert," saiD Steven 
FleiSHmaN, MerriLl lynCH's inflUentiAl ENerGy analyst. "If The sTakes were 
AlreadY High, now THey're hiGher stIll." 
effOrts BY pOwEr cOmPAniES tO reCOveR costs frOm ThE utilItieS COULd deRaiL 
effOrts bY Gov. Gray Davis To rEmedY calIfornIa's enErgy MeSs by pUrchasIng 
thE uTilities' power liNes. 
THe talks arE stIlL slOgGing tHRough a Pea SouP of issuEs and leGAl dEtAILS. 
PAcific Gas and ElectrIc cO. Is ReluctanT to selL ItS tRAnsmissiOn LinEs, anD 
TO part With THeM at all thE compaNY wAnTs consiDeRably mOrE thAn tHe $5 
bilLIon tHe statE is belieVed to BE offering. 
While THe creditors arE GoING aFTer SOutHern CaliforNia EDIson, WhicH OwEs 
mILlionS of doLlARs TO smaller power companIeS, analySts saId similar 
bankRuptcy procEEDIngs agaiNst Pg&e cOUld follow at any Time. 
THe heightenED potentiAl for One or botH of CalifoRNIa's two biGgeSt 
uTilItiES GoIng bankrupt seNT A chiLl Through InvEstors. SHarEs oF PG&e CoRp. 
Fell almosT 12 percent YeStErDaY to $11.42, While eDison IntErNatIoNal 
DroppED 10 perceNt to $12.24. 
MOvinG qUiCKly To stem WALl sTReet'S jItTers, pG&E'S cHief fInanCIal Officer, 
kent HarveY, saID in a CoNfErence cAll that the utiLiTy will pay oFf A 
poRtion oF ITs debts tO power companies and intenDS to make GooD to alL 
creDitors. 
"The MesSage thEy'rE Trying To send Is thaT tHey'RE In a beTTEr PosItIon than 
EdiSON," saId PauL PAtteRson, an aNalyst at Credit SuisSE FiRst Boston. "They 
WanTed tO MAkE clEAr THat No ONe iS THreatening them wIth bankrupTcY." 
noT yet. For the MOmeNt, All eyes
-------------------------- ---------- ----- --- --- -- ---- ---- -------------- - ---- --
------------------- ----- -- - ---- - -- ----- ------- - -- - - --- -- -- --- -- - -- ----- 
Cr editors  ThreatenUti li ties' Financ e s
Suppliers  tr y to force E dis on int oban k ruptc y David  Lazar u s, Chr onicle St af f  Write r 
Saturd a y ,Marc h 17, 2001 
,2001 Sa n  Francisco Chr onicle  U RL : 
ht tp: //www.sfga te .com/ c gi-bin/ a rt i c l e.c g i?file=/chron icle/archiv e /20 01/03/ 17 /MN 147053 .DTL
C a lif ornia's cas h-po or utilit ies fa c ed a re n ewed th reat o f f ina ncia l  ca tas tr o phe ye ste r day  as impa ti en t cre dito r s f or t hefirs t tim e moved to 
s tar t ba n kru ptcyproce edin gs . 
"T he Cal iforn ia  power crisis i s no w back on  re dale rt ," sa i d Stev en
Fl eishman , Merri l l L yn c h ' sinfluential energy  a n a ly st. "Ifthe st a ke sw ere 
alr ea dyhigh , now t hey' r ehigher s till." 
E ff orts by  p ower c om pan ies  to r e cove r cost s from t he ut i lities could d e rail 
efforts by G ov .  Gra y D avis to rem edyC alif orni a 's  en e rgy m ess b yp ur c hasing 
the utiliti es ' powe r lin es. 
The talk s are stil l s loggingthro u gh a pea soup ofissue s and lega l  details . 
Pa cific Ga s and Ele c t ric Co.isrel uct ant t osell its tran s m issi on  lines,  an d 
to p art  wi ththe mat all th e compan ywa nt scon sider a bly more  t han  t he$5 
b i llionthe s tate  i sb eli eved to be o ffer in g.  
Wh ile  t he cr edit o rsare goi ng afterSou t hern  C al ifornia  Edison, whic howes 
mill io nsof dol l a rs to sm aller power companies,a nalysts  sa id si mila r 
bankru ptc y proc eed i ngs ag ainstPG&Eco uld f ollow a tany  t ime. 
Theh e igh tened  p oten tial fo r one or both of C a lif ornia's two b igg estu ti lit i es goi ng ban k r upt sent a chil l throughin v es tors. Shar e s o fPG&E Co rp. 
fe ll al m ost 12percent y esterdayto  $11 . 4 2,while Edis on Inter nationaldropp e d10 pe rce nt to$1 2.2 4. 
M ovingq uic kly t o stem  W all St reet' sjitters,  PG&E's chief financial  offic er, Ken t Harvey,  sa i d i n a confe renc e call tha t t heutili tyw ill p ay o f fa p ortio n of its debts to  po w e rcompanies a n d int endstom ake go od t o all 
creditors. 
"The messagethey ' r e t ryi n g to  s end is that th ey' re i n a bett er  position t han 
Edi so n ," sa id Pau l Patt erson,a n  a n alystat C red it Suisse  Fi rs t  Boston ."T h ey 
wa nted  t o make  clear that n o one is threate ningt h em wi t h b ankru pt cy." 
N o t ye t. For the  moment, al l eyes 
------------------------------------------------------------------------------
-----------------------------------------------------------------------
Creditors Threaten_Utilities' Finances_
Suppliers try to force_Edison into_bankruptcy_
David Lazarus,_Chronicle_Staff Writer
Saturday, March_17, 2001 
,2001_San Francisco Chronicle 
URL:_
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/17/M
N147053.DTL 
California's cash-poor_utilities_faced a renewed threat of financial 
catastrophe yesterday as impatient creditors for the first_time_moved to_
start_bankruptcy_proceedings. 
"The California power crisis_is now back on red_alert," said_Steven 
Fleishman, Merrill Lynch's influential energy analyst. "If_the_stakes were 
already_high, now they're higher still." 
Efforts by power companies_to recover costs from the utilities_could derail 
efforts_by_Gov._Gray Davis to remedy_California's energy mess by purchasing 
the_utilities' power lines. 
The talks are_still slogging through a pea soup of_issues and legal details. 
Pacific Gas_and Electric Co. is reluctant_to sell_its transmission lines, and 
to_part with them_at all_the company wants_considerably more than the $5 
billion_the state is_believed to be offering. 
While the_creditors_are going after_Southern_California_Edison, which_owes 
millions of_dollars_to smaller_power_companies, analysts said similar 
bankruptcy proceedings_against_PG&E could follow at any time. 
The_heightened potential for one_or_both of California's two_biggest 
utilities going bankrupt sent_a chill through investors. Shares of_PG&E Corp._
fell almost_12 percent yesterday to $11.42, while Edison International 
dropped 10 percent_to $12.24. 
Moving quickly to stem_Wall Street's jitters, PG&E's_chief financial_officer,_
Kent Harvey, said_in_a conference_call that the utility will pay off_a 
portion_of its debts to power companies_and intends to make_good_to all 
creditors. 
"The message they're_trying to send is that they're_in a better position than_
Edison,"_said_Paul Patterson, an analyst at_Credit Suisse First Boston. "They 
wanted_to make clear_that no one is threatening them with_bankruptcy."_
Not yet. For the moment, all_eyes