Pacific Gas & Electric plans up to $5.1 billion of debt financing; PG&E plans up to $500 million

By Andrea Heisinger

New York, Sept. 2 - Pacific Gas & Electric Co. has formed a financing plan through 2011 that includes tapping the investment-grade debt market, according to a presentation released Tuesday in a Securities and Exchange Commission filing.

It projects issuance of $4.5 billion to $5.1 billion in long-term debt through 2011.

Included in the total is the reissuance of $454 million of tax-exempt pollution control bonds by the end of 2008.

The company plans to maintain its capital structure with 48% in the debt and preferred markets and 52% in equity.

The parent company, PG&E Corp., has capacity for $300 million to $500 million of debt issuance, depending on market conditions, according to the presentation.

The goal of the financing is to maintain strong investment-grade ratings for both Pacific Gas & Electric and PG&E.

The utility company PG&E is based in San Francisco.

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