[eldondre]

Originally Posted by billy ross

There is good news buried in that article. PGW will retire one third of its debt over the next five years by simply cashflowing it (i.e. making the contractual payments). In order to do this it will continue to run a deficit, but a continually shrinking deficit, and one which is much smaller than the debt it is retiring. In short, I think that time will take care of PGW, finally.

Actually, the news is better than that:

' Knudsen believes it will turn the corner next year and eke out enough cash in the next four years to reduce long-term debt by $400 million.'

That means that they will supposedly be sufficiently cash-positive starting next year to wipe out $400 million NET in debt over four years.

Of course, that good news has an asterisk

But he is counting on the PUC's making permanent the $60 million rate increase. Under terms of the emergency relief, PGW is required to file a new rate case with regulators by the end of the year.