This excerpt taken from the PWER 8-K filed Jan 5, 2007.
Accounts receivable represent receivables from customers in the ordinary course of business. PEG is subject to losses from uncollectible receivables in excess of its allowances. PEG maintains allowances for doubtful accounts for estimated losses from customers inability to make required payments. In order to estimate the appropriate level of this allowance, PEG analyzes historical bad debts, customer concentrations, current customer creditworthiness, current economic trends and changes in customer payment patterns. If the financial conditions of PEGs customers were to deteriorate and to impair their ability to make payments, additional allowances may be required in future periods. PEGs management believes that all appropriate allowances have been provided.