PG&E; Sets Plan to Pay Calpine Bills
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Calpine Corp., a U.S. power producer, said PG&E; Corp. agreed to begin making monthly payments this month to Calpine for $265 million in outstanding power bills.
PG&E;, owner of California’s largest utility, will begin payments Dec. 31 for power supplied from Dec. 1, 2000 to April 6, 2001, Calpine said in a statement. PG&E; will pay principal and 5% interest through the end of November 2002.
PG&E;’s Pacific Gas & Electric utility filed for Chapter 11 bankruptcy protection in April after piling up more than $9 billion in debt buying power. Under California’s electric deregulation law, PG&E; wasn’t allowed to pass all of its power-buying costs to customers.
The agreement is subject to Bankruptcy Court approval.
Shares of Calpine, which has power plants in 29 states, Britain and Canada, rose 32 cents to $20.49 on the NYSE.
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