PG&E sends plan voting materials to creditors; ballots due by May 15

By Caroline Salls

Pittsburgh, April 13 – PG&E Corp. and Pacific Gas and Electric Co. have sent voting materials to roughly 250,000 parties entitled to vote on the PG&E debtors’ Chapter 11 plan of reorganization, including fire claimants, some holders of pre-bankruptcy funded debt and other creditors and shareholders, according to a news release.

PG&E said all ballots must be received by 7 p.m. ET on May 15 to be counted.

As previously reported, the company made a series of new commitments regarding its governance, operations and financial structure as of March 20. PG&E said these commitments are all designed to further prioritize safety and expedite its successful emergence from Chapter 11.

The new commitments include supporting the California Public Utilities Commission’s enactment of measures to strengthen PG&E’s governance and operations; agreeing to host an observer to provide the state with insight into progress on safety goals before the company exits Chapter 11; and agreeing that, in the unlikely event the plan is not confirmed or PG&E does not exit Chapter 11 in a timely manner, that an orderly process for a sale of the business to the state or another party will be launched.

The commitments also include a commitment not to reinstate a dividend for about three years, which is estimated to contribute an additional $4 billion of equity to pay down debt and invest in the business; pursuing a rate-neutral $7.5 billion securitization transaction after PG&E emerges from Chapter 11, to reduce the cost of financing for customers and to accelerate payments to wildfire victims; and committing not to seek recovery in customer rates of any portion of the $25.5 billion in value that will be paid in connection with the 2017-2018 wildfires.

In addition, PG&E said steps taken to ensure the plan complies with Assembly Bill 1054 include selecting a number of new members of the debtors’ boards of directors upon emergence; pursuing a plan to regionalize the company’s operations and its infrastructure to enhance the focus on local communities and customers; appointing an independent safety adviser after the term of a court-appointed federal monitor expires; and taking other safety and oversight actions.

The company said it recently appointed industrial safety expert Francisco Benavides to a newly expanded role of chief safety officer. Benavides has oversight of PG&E’s strategy to further improve public and workforce safety.

As part of the Chapter 11 process, PG&E said it previously reached settlements valued at $25.5 billion with all wildfire victims’ groups.

The electric and natural gas utility is based in San Francisco. The company filed bankruptcy on Jan. 29, 2019 in the U.S. Bankruptcy Court for the Northern District of California under Chapter 11 case number 19-30088.

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