SAN FRANCISCO - Pacific Gas and Electric Company has received approval from the U.S. Bankruptcy Court to pay $333 million of 7-7/8 percent Series 92A First and Refunding Mortgage Bonds maturing March 1, 2002.

Bondholders who hold the bonds in a brokerage account will have principal and interest paid to their account. Certificate holders will need to deliver their certificates to the trustee, The Bank of New York, to receive payment for the principal. Interest checks to certificate holders will be mailed separately.

The $333 million mortgage bond series was recently included by the California Public Utilities Commission in the debt it proposed to reinstate as part of its term sheet. However, as PG&E noted in its response to the CPUC term sheet, this debt cannot be reinstated because the debt matures on March 1, 2002, long before the proposed effective date of the CPUC's term sheet.

With this Court approval, PG&E will pay the bondholders from its current available cash.