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.
COURT APPROVAL TO PAY PRE-PETITION PORTION OF PROPERTY TAXES
San Francisco, CA -- Pacific
Gas and Electric Company today filed a motion with the U.S. Bankruptcy
Court asking the court to authorize payment of the pre-petition
portion of its property taxes. The company pays property taxes in
If the court approves the
motion, Pacific Gas and Electric Company will be able to immediately
pay up to $41.2 million, its portion of property taxes prior to
April 6, the day it filed for protection under Chapter 11 of the
U.S. Bankruptcy Code. The company's total property tax payment was
$78.5 million, and it paid the post-petition portion of $37.3 million
on April 10.
Pacific Gas and Electric
Company is asking the court for authorization to pay its pre-petition
portion of property taxes because counties depend on taxes paid
by the utility to fund many services and the company wanted to limit
the impact to local governments. In addition, counties are fully
secured creditors and payment of their claims will not adversely
affect any other creditors in the case.
In order to be fair to other
creditors, Pacific Gas and Electric Company is proposing that the
property tax payments be made in full, without late penalty payments.
Local tax collectors have the authority to cancel the delinquent
penalties on property taxes upon a determination that the failure
to make a timely payment is due to a reasonable cause and circumstances
beyond the taxpayer's control, and occurred notwithstanding the
exercise of ordinary care in the absence of willful neglect.