PG&E; to Pay Public Service Enterprise Group

PG&E; Corp., the owner of California’s largest utility, has agreed to pay Public Service Enterprise Group Inc. $61.7 million in outstanding electricity bills.

PG&E; will make monthly payments of principal and interest through year’s end, Newark, N.J.-based Public Service said in a statement. The power was supplied by Public Service’s California affiliates from Dec. 1, 2000, to April 6, 2001.

PG&E;’s Pacific Gas & Electric utility filed for Chapter 11 bankruptcy protection in April after accruing more than $9 billion in debt while paying record prices for power.

Under California law, PG&E; wasn’t allowed to pass on all of its power-buying costs to customers.

Last month, Bankruptcy Court approved PG&E;’s agreement to pay San Jose-based power producer Calpine Corp. $265 million in outstanding electricity bills.

Shares of Public Service, which owns New Jersey’s largest utility, Public Service Electric & Gas, fell 68 cents to $41.94, and PG&E; rose 10 cents to $19.55, both on the NYSE.

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Bloomberg News