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To: mishedlo who wrote (8304)	1/2/2001 12:20:36 PM
From: mishedlo	Respond to of 13572

Tuesday January 2, 11:48 am Eastern Time PG&E: Unit May Run Out of Cash in 3 Weeks NEW YORK (Reuters) - PG&E Corp. (NYSE:PCG - news) said its Pacific Gas & Electric Co. unit expects to exhaust a $1.2 billion cash reserve by the third week of January unless creditors back off a demand for advance payment for natural gas and power deliveries. In its filing with the Securities and Exchange Commission on Friday, PG&E said Pacific Gas has payments of $438 million and $583 million due on Jan. 3 and Feb. 1, respectively. Without a rate increase or additional financing, it said, the unit will eat through its reserves in three to seven weeks. PG&E and Edison International (NYSE:EIX - news), which own California's biggest utilities and are operating under a rate freeze, are seeking respective rate hikes of 26 percent and 30 percent so they can pass on soaring wholesale power costs to consumers. The California Public Utilities Commission is expected on Thursday to decide whether to lift the freeze. PG&E said it needs to raise $3.6 billion by the end of the first quarter, adding that if its credit ratings fall significantly -- a move that top rating agencies have threatened -- it would need to raise an additional $2 billion to pay down short-term debt and repay existing lenders. PG&E shares fell 3/8 to $19-5/8 on the New York Stock Exchange. Edison International dropped 7/16 to $15-3/16 on the NYSE. ======================================================== California seems quite messed up. Is there any way to tell what banks might get hit by this? M

To: mishedlo who wrote (8304)	1/2/2001 5:56:10 PM
From: Tomas	Respond to of 13572

Re: Bonds A good US Govt bond fund is the AM CT MATUR 2025 (BTTRX) which are 30 year zero coupon bonds. These give about twice the leverage that a straight US Govt bond fund gives for a change in rates. For example the 30 year bond gained about 2% today so the fund value should increase about 2%. A word of warning!! don't ever hold these funds in December in a taxable account. You will be charged all of the intrest for the year. I know because I made this stupid mistake a few years ago. Stay away from any junk bond funds as they get hammered just like stocks during times like these. What you see now is a flight to quality in US Govt bonds which should last another six months. Regards Tomas