PG&E plan of reorganization OK’d by California’s utilities commission

By Wendy Van Sickle

Columbus, Ohio, May 28 – PG&E Corp. and Pacific Gas and Electric Co.’s Chapter 11 plan of reorganization was approved Thursday by the California Public Utilities Commission, according to a news release.

This approval represents another major milestone needed for PG&E to be eligible to participate in California’s Wildfire Fund and keeps the company on track for bankruptcy court confirmation of the plan prior to June 30, the utility reported.

The bankruptcy court confirmation hearing began on May 27.

By adopting a final decision, the CPUC approved a number of measures to improve PG&E’s governance process, operational structure and safety performance. Many of the measures outlined in the final decision already are underway, according to the release.

The decision also approved PG&E’s request to issue new debt and securities to finance its exit from Chapter 11.

“Since the beginning of the Chapter 11 process, our main goal has been to get wildfire victims paid fairly and quickly. Today’s vote keeps us on track to do so,” chief executive officer and president of PG&E Corp. Bill Johnson said in the release.

“We have supported recommendations from the governor’s office, CPUC president Batjer and the other commissioners, and many other stakeholders to hammer out a plan that will help PG&E become the utility that our customers and communities expect and deserve.”

On May 12, the Federal Energy Regulatory Commission issued its approval of the plan, including authorizing the creation and funding of PG&E’s proposed fire victim trust.

The plan does not raise customer rates and passes on approximately $1 billion in interest savings to customers, according to PG&E. The plan’s financing provisions position PG&E to attract low-cost capital to fund its wildfire mitigation plan to invest tens of billions of dollars in system hardening and wildfire risk mitigation in future years.

As part of the Chapter 11 process, PG&E previously reached settlements with all wildfire claimants' groups to be implemented under PG&E's plan, totaling about $25.5 billion.

PG&E is an electric and natural gas utility based in San Francisco. The company filed bankruptcy on Jan. 29, 2019 under Chapter 11 case number 19-30088.

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