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P G & E Files Bankruptcy

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Cash-starved Pacific Gas and Electric filed for protection this morning under Chapter 11 of the federal
bankruptcy code.

P-G-and-E says California´s lengthy energy crisis has put it some 9 (b) billion dollars in debt — and that debt is increasing by some
300 (m) million dollars a month.

Trading in the company´s stock was halted on the New York Stock Exchange with the price per share at

The bankruptcy comes the morning after Governor Gray Davis proposed easing utility debts by giving them a share of a record rate increase
approved last week. He also said he wants to continue negotiating with the company on a plan for the state to acquire P-G-and-E´s transmission

Davis spokesman Steve Maviglio said the filing came as a complete surprise.