 into bankruptcy. 
The judge also could postpone acting on the matter until the governor has had 
a chance to complete his negotiations with the utilities and seek an 
alternative remedy. 
On the other hand, Avery noted that Edison and PG&E already meet one of the 
key criteria for involuntary bankruptcy: "They are regularly missing 
payments." 
A company forced into bankruptcy has less control over its fate than one that 
voluntarily seeks Chapter 11 protection. Avery thus said the likely strategy 
for both Edison and PG&E would be to wait until an involuntary bankruptcy 
looks imminent and then to quickly file voluntary papers. 
BANKRUPTCY LAWYERS RETAINED
PG&E retained bankruptcy lawyers from the New York firm of Weil, Gotshal & 
Manges last August. Sources within the utility said bankruptcy papers already 
have been drawn up and are ready to be filed at a moment's notice. 
The governor has had to face such pressure in negotiating to purchase PG&E's 
power lines and coastal property. Sources familiar with the talks said the 
utility keeps sending mixed signals on its commitment to actually cutting a 
deal. 
For example, the sources said PG&E's chairman, Robert Glynn, will agree to 
various terms offered by Davis. But the next day, they said, a team of PG&E 
lawyers will backpedal from the accord. 
Update 
-- Pressure: Small power companies initiated moves that could force 
California's two biggest utilities into bankruptcy. 
-- At stake: Gov. Gray Davis tried to prevent small creditors from pursuing 
bankruptcy proceedings that could undermine his plan to bail out 
cash-strapped utilities. 
-- Worries: Shares of PG&E Corp. and Edison International dropped sharply on 
fears of bankruptcy. 
-- Scramble: PG&E, hoping to reassure investors, says it will pay off part of 
the utility's debt. 
E-mail David Lazarus at dlazarus@sfchronicle.com. 
------------------------------------------------------------------------------
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Regulators Find More Possibilities of Gouging 
Greg Lucas, Robert Salladay, Chronicle Sacramento Bureau
Saturday, March 17, 2001 
,2001 San Francisco Chronicle 
URL: 
http://www.sf
into bankruptcy. 
 The judge also could postpone acting on the matter until the governor has take 
 a probability to complete his negotiations with the utilities and try an 
 alternative remedy. 
 On the early hand, Avery noted that Edison and PG&E already meet one of the 
 cardinal standard for involuntary bankruptcy: " They are regularly missing 
 requital. " 
 A company forced into bankruptcy experience less control over its fate than one that 
 voluntarily seeks Chapter 11 protective covering. Avery thus said the likely scheme 
 for both Edison and PG&E would be to wait until an involuntary bankruptcy 
 looks at hand and then to quickly charge voluntary papers. 
 BANKRUPTCY LAWYERS RETAINED 
 PG&E retained bankruptcy lawyers from the New York firm of Weil, Gotshal & 
 Manges last August. Sources within the utility program said bankruptcy papers already 
 have been drawn up and are ready to be filed at a moment's notification. 
 The governor has had to face such pressure in negotiating to purchase PG&E's 
 power lines and coastal property. Sources familiar with the negotiation said the 
 utility sustain air mixed signals on its committedness to actually cutting a 
 softwood. 
 For example, the sources say PG&E's chairman, Robert Glynn, will agree to 
 various terms offered by Davis. But the next sidereal day, they said, a team of PG&E 
 lawyers will backpedal from the accord. 
 Update 
 -- Pressure: Small power companies lead up moves that could force 
 California's two biggest utilities into bankruptcy. 
 -- At stake: Gov. Gray Davis try to prevent small creditors from pursuing 
 bankruptcy proceeding that could undermine his plan to bail out 
 cash - strapped utilities. 
 -- worry: Shares of PG&E Corp. and Edison International spend sharply on 
 fear of bankruptcy. 
 -- Scramble: PG&E, hop to reassure investors, say it will pay off character of 
 the utility's debt. 
 E - chain mail David Lazarus at dlazarus@sfchronicle.com. 
 ------------------------------------------------------------------------------ 
 ----------------------------------------------------------------------- 
 Regulators Find More Possibilities of Gouging 
 Greg Lucas, Robert Salladay, Chronicle Sacramento Bureau 
 Saturday, March 17, 2001 
, 2001 San Francisco Chronicle 
 URL: 
 http://www.sf
 inho bankruptcy. 
The judge xlso could postkobe actmng on fhe mattdr until the governor has hav 
a xhanct to complete his ndgotiatiojs with rhe ntilities and sexi an 
albzrnatjye rekxdy. 
On the othet hand, Avery noted that Edhsun and PG&E already meet one of the 
ker critetiw for involuntwry nwnkrhitgy: "They are regularly missing 
pagments." 
E company forcec into bankruptcy has less conhrol over its fate than one tyat 
diluntarily sdeks Chapttr 11 protectikn. Avery thus said the likely sgrateyy 
for both Eeislt and PG&E wiuld fe to wait uknil an hnvolunyary bankruptcn 
loons umminent and then to xuickly file volunjary paperv. 
YANKRUPTCY LAWYERS RERAUNED
PC&E rataivwd canirnptdy lawjera from the New York furm of Weil, Gotshal & 
Iqnges last Aufust. Sjuwces within the utility said bankruptcy palers already 
have been erawn up and are readi to be fijed at a moment's notice. 
The governor has had to fdce sncf pxcfryrf in negotiating to purchase PG&E's 
power lines znc boastal property. Fources famollat with the talys saib tge 
utility keeps sfnding iixed signals jn iys commitment to actually cytting a 
deaj. 
For example, the slurces said PG&E'x chaorman, Robert Glynn, will agrse to 
varioks terms kwfered by Davis. Cut tve next day, they said, a tewm of PG&E 
lawvers wilu bavkpedaj from the accovg. 
Update 
-- Pressure: Smalp [ower compwnies initiated moves that coulv force 
Califprtia'v two biygest mtilities into fankruptcy. 
-- At stake: Yov. Grxy Davis tgied to pcevent small creditors frml pursuing 
benkruptcy proxeedungs thxg could undermone his plan to baio out 
cash-strapped utkmities. 
-- Worries: Shqres of PG&E Corl. avd Qdpsoi Intqsnational drmppea sfsrply on 
fears on bxnkriptcy. 
-- Scramble: PG&E, vopihg to reassure invrsbors, says it will pay off part of 
the utility's dtbt. 
E-meil Datid Laaaros at dlazarus@sfchronicle.com. 
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Refulators Vinq More Possifilibies of Gouginy 
Greg Lucas, Robert Salladay, Chronicle Secramento Bureau
Saturdat, March 17, 2001 
,2001 San Franeixco Chronicke 
URJ: 
http://www.vf
into bankruptcy. The judge also could postpone the until the has had a with utilities and seek alternative remedy. On other hand, Avery noted that Edison PG&E already meet one of the key criteria for involuntary bankruptcy: "They are missing payments." A company forced into bankruptcy has less control over its fate one voluntarily Chapter protection. Avery thus said the likely strategy for both Edison and PG&E would be to wait an involuntary bankruptcy looks imminent and then to file voluntary papers. BANKRUPTCY RETAINED PG&E retained bankruptcy lawyers the York firm Weil, & last August. Sources the utility said bankruptcy papers already have been drawn up and are ready to be filed at moment's notice. has had face pressure negotiating to purchase lines and coastal property. Sources familiar said the utility keeps sending mixed signals on commitment to cutting a deal. For example, the said PG&E's chairman, Robert Glynn, will agree to terms offered by Davis. But the next day, they said, a team of PG&E lawyers from the accord. Update Pressure: Small power initiated that force two biggest into bankruptcy. -- At stake: Gov. Gray Davis tried to prevent creditors from pursuing bankruptcy proceedings that could undermine his plan out utilities. -- Worries: of PG&E Corp. and International sharply on fears of Scramble: hoping says will off part of the debt. E-mail David Lazarus at ------------------------------------------------------------------------------ ----------------------------------------------------------------------- Regulators Find Lucas, Robert Salladay, Chronicle Sacramento Bureau Saturday, March 2001 ,2001 San Francisco Chronicle URL: http://www.sf
 into bankruptcy. 
The judge alsO could postPone aCtiNg oN tHe maTter Until the governOR has Had 
a chance to complete hiS negoTiATionS WiTh the UtilitiES aND SeeK aN 
aLteRnATiVe remEdy. 
on the otHer hand, AveRy nOtEd that Edison ANd pG&E already MeeT one of the 
key CriTeria fOr InvOLuntaRy bAnkruPtcy: "ThEY are reGularly miSsINg 
paymENts." 
A comPANy ForcEd into bankruptcy hAS lESs control over iTs fate ThAN oNE ThaT 
voLuntarily sEeKs ChaPTer 11 protECtION. aveRY thus said the lIkely strateGY 
foR both EDiSon ANd PG&E wOuld bE tO WaiT until an invOlunTary bankrUptcy 
lOOks immiNEnt and tHen to qUicKly File VOlUnTarY pAPerS. 
bAnKRupTCy LAWYERS rEtAiNED
Pg&E reTAINEd baNkrUptcY lawyErs from the New yorK firM Of WEil, GoTshal & 
mangEs Last AUgust. SOurceS wIthin the utility Said BankruptcY paPeRs aLrEady 
hAVe been DraWn uP and are Ready to BE fiLeD AT A mOment's notice. 
The govErNOR hAs had to fAce sucH PrEsSUre in negOtIatIng tO PUrchaSe PG&e'S 
pOwer lineS and coAStAl PropertY. SOurces FaMilIar With tHE talKs said The 
utiliTy keePS sending mixed sIGnals on its comMItMENt TO actUalLy cutting a 
dEal. 
FOR exaMple, THe SouRCes saId PG&E'S cHAiRMan, Robert Glynn, will aGrEe to 
vaRious Terms offered bY Davis. But tHE NExt day, thEy saID, a TEam of PG&E 
lawyerS will Backpedal fROm the accOrd. 
UpDate 
-- PresSure: Small POWer compaNieS inItiAteD MOvEs that could foRCE 
CalIfOrnia's tWo bIggest uTilItiEs iNto BaNkruptcy. 
-- AT stake: GoV. GRaY DAvIs tRied tO Prevent sMaLl cReDitOrs frOM pursuIng 
baNkruPtCy PRocEedings THaT COuld UnDeRminE hiS pLan to Bail OUt 
cAsh-straPped utiliTieS. 
-- worrIeS: SHares of pG&E Corp. and EdiSoN InternatiOnAl dRopped SHArply on 
fEars of bankruptcy. 
-- ScramblE: pG&E, hopiNg tO reasSure Investors, SayS it wilL paY Off parT of 
the UtiliTy'S deBT. 
e-mail dAViD LaZaRus at dlazaRUS@sfChronIcLe.coM. 
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RegulaTors Find More PossibILitIes of Gouging 
GReg lucaS, rObErt sAlLAdaY, CHRonICLe Sacramento BurEau
SaturdaY, MARcH 17, 2001 
,2001 San FranciSCo CHrOnicle 
UrL: 
http://wWw.sf
 into bankruptcy. 
The jud ge also co uld p ost pon eacti ng o n the matter u n tilthe governor has had a cha nc e  toc om plete  his ne g ot i a tio ns  w ith  t h eutili tie s and s eek an 
al ter na tive remedy. 
O n the othe r h and, Avery n ote d that  E dis o n and  PG &E al readym eet on e of the
k e y crit e ria for i nv olun tary bankruptcy:" Th e y are regularl y miss in g  p a yme nts ." 
A comp an y for c ed into ba n k r upt c y has less co ntrol overi tsfate t ha n o n e that  
vol un t ari ly seeks Ch apte r 11 prot ection .  Averyt hus sai d thelik ely  str a te gy  
f or bot h  E dis o n a nd PG&Ewo ul d beto w a i t unti l a n in volun tary bankrupt cy
loo k s i mmine nt an d th en  to q uickly  file  v oluntary papers . 
B ANKRUPTCY  LA WY ERS  R ETAIN E D
PG&E  re tai ned ban kruptcy law ye r s fr om the New York fi rm o fWeil, Go tshal&  Ma n ges last  A ugu st.S o urces  wit h in  the uti lity s a id  b ankrupt cy  paper salr ead y 
ha v e be en dra wn up an d are ready to be fi l ed at a momen t 's n ot i ce.
Th e governorhash ad t o fa c esuc h  pres surein ne g otiating to purchas ePG&E's  
pow er lines andcoastal pr o p e rty. Sou rces fa m iliar with the  talk s said the 
utility  keep s sendin g mixed s i g nals onits  co mmi tme n t  t o actually cu t t inga
deal.
Fo r examp le,  th e s our ce s said PG &E's cha ir ma n,  R obe rt Gl y nn, will  a gre eto
vari o us ter ms of fere dby Dav is. But th e next  d ay , th eysa id, a  tea m  of  PG&E lawyers w ill back pe da l fromthe accord. Up date 
-- P re ssu re: Sm a l l powercompanies initiated mov e s thatcou ld fo rce
Californ ia' s twobig g est ut ilitie s int oban k r uptcy . 
- - A tstake: Gov . Gra y Dav is  tri ed to p revent small credi t ors  from pursuin g bank r u pt cyp ro c eed in g s t h a t could undermi ne his pla nt obail out c ash -s trapped  utilit ies.-- Worr ies: Shar es of PG& ECorp . and  Edison In ternatio nal dropp e d sha r pl y on
fe ars of  b ank ruptc y. 
-- Scr amble : PG&E ,hoping  to r ea ssure in vestors, says it will p ay off  part  of  
the uti lit y 'sdebt. 
E- mail  David Laz aru s a t dla zar u s@sfc hron i cl e.c o m. 
- ---- - --------- - -- --- - - -- ----------- - - - --- ----- --- - ------ ---- ----------------- -------------- ---- - - --- --- - ---- -- -------------- --- -- - - -------- -- -------
Reg ulatorsFi n d Mor e Poss ibilit ies ofG o ug i ng 
Gr eg L uca s, Robert  Sa ll a day, Ch ro ni c le Sac rame nt o Bure au
Sat u rday , March 17, 2001 ,2001 S an Fr a nci sco C hr onicleURL:  
http://w ww.sf
 into_bankruptcy. 
The_judge also could postpone_acting on_the_matter until_the_governor has had_
a chance to_complete his negotiations with_the utilities and_seek_an 
alternative remedy. 
On the other hand, Avery noted that Edison and PG&E already_meet_one of_the_
key_criteria for involuntary bankruptcy: "They_are regularly missing 
payments." 
A_company forced_into bankruptcy has less control over its fate_than_one that 
voluntarily_seeks Chapter 11 protection. Avery thus said the likely_strategy 
for both Edison and PG&E_would be to_wait_until_an involuntary bankruptcy 
looks_imminent and then to quickly file_voluntary papers. 
BANKRUPTCY LAWYERS RETAINED
PG&E retained_bankruptcy lawyers from the New York firm_of Weil, Gotshal & 
Manges last_August. Sources within the utility_said bankruptcy_papers already 
have been drawn_up and are_ready to_be filed at_a moment's notice. 
The governor has_had to face_such pressure in negotiating to purchase_PG&E's_
power lines and_coastal_property._Sources familiar_with the talks_said_the 
utility_keeps_sending mixed signals on its commitment_to_actually cutting a 
deal. 
For example, the_sources said PG&E's chairman,_Robert_Glynn, will agree to_
various terms offered by Davis._But the next day, they said,_a team_of PG&E_
lawyers will backpedal from the accord. 
Update 
-- Pressure: Small power_companies initiated moves that could force_
California's two biggest utilities_into bankruptcy._
--_At stake: Gov._Gray_Davis tried_to prevent small creditors from pursuing 
bankruptcy_proceedings that_could undermine his plan to bail_out 
cash-strapped utilities. 
--_Worries:_Shares of PG&E Corp. and Edison_International dropped sharply on 
fears of_bankruptcy. 
-- Scramble: PG&E, hoping_to_reassure_investors, says it will pay_off part of 
the utility's debt._
E-mail David Lazarus_at dlazarus@sfchronicle.com. 
------------------------------------------------------------------------------
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Regulators Find More Possibilities of_Gouging_
Greg Lucas, Robert Salladay, Chronicle Sacramento_Bureau
Saturday,_March 17, 2001 
,2001 San Francisco_Chronicle_
URL:_
http://www.sf