Pacific Gas & Electric (PCG)

Pollution Control Bond Term Loan Facility and 3.5% Pollution Control Loan Agreements

On the Effective Date, the Utility entered into a $345 million term loan facility that was used to fund the Utility’s purchase, in lieu of redemption, of the CPCFA’s Pollution Control Revenue Bonds, 1992 Series A and B and 1993 Series A and B, or collectively the Old Bonds.

On June 29, 2004, the Utility entered into four separate loan agreements, each dated as of June 1, 2004, with the CPCFA, which issued $345 million aggregate principal amount of its Pollution Control Refunding Revenue Bonds, 2004 Series A ($70 million), 2004 Series B ($90 million), 2004 Series C ($85 million), and 2004 Series D ($100 million), or collectively the New Bonds, to refund the Old Bonds. The funds made available from the refund of Old Bonds were used to repay the $345 million term loan facility. Principal and interest payments on the New Bonds are backed by bond insurance and the Utility’s obligations under the new loan agreements are supported by $345 million of First Mortgage Bonds that are held by the trustee for the New Bonds.

Pollution Control Bond Term Loan Facility and 3.5% Pollution Control Loan Agreements

        On the Effective Date, the Utility entered into a $345 million term loan facility that was used to fund the Utility's purchase, in lieu of redemption, of the CPCFA's Pollution Control Revenue Bonds, 1992 Series A and B and 1993 Series A and B, or collectively the Old Bonds.

        On June 29, 2004, the Utility entered into four separate loan agreements, each dated as of June 1, 2004, with the CPCFA, which issued $345 million aggregate principal amount of its Pollution Control Refunding Revenue Bonds, 2004 Series A ($70 million), 2004 Series B ($90 million), 2004 Series C ($85 million), and 2004 Series D ($100 million), or collectively the New Bonds, to refund the Old Bonds. The funds made available from the refund of Old Bonds were used to repay the $345 million term loan facility. Principal and interest payments on the New Bonds are backed by bond insurance and the Utility's obligations under the new loan agreements are supported by $345 million of First Mortgage Bonds that are held by the trustee for the New Bonds.