Pacific Gas & Electric's bank debt moved up to the 86-87 context, trading up from the 82 1/2 range. An estimated $50 million traded over the week. Dealers said the uptick in levels is a result of energy prices going down. "The problem was there was a one-time spike in natural gas prices with a regulated end-user price," explained a dealer. With the state now managing the purchasing of energy, it's allowed a raise in end-user rates, meaning the costs have gone up to the consumer. Pacific Gas & Electric is a utility company based in San Francisco.
Questions to Peter Darbee, cfo, were referred to spokeswoman Erica Jacobs, who did not return calls. PG&E's debt traded into the 69-70 range early last summer as dealers noted a recovering energy crisis (LMW, 7/8). Dealers also noted last week that the company was undergoing a restructuring plan that would give holders a 110% recovery plus accrued notes.