SAN FRANCISCO, Sept. 26, 2002 — The U.S. Bankruptcy Court recently ruled that the confirmation hearings in Pacific Gas and Electric Company’s Chapter 11 case will begin on November 18, 2002.
“We are pleased PG&E’s reorganization plan continues to move forward in a timely manner and that the Bankruptcy Court did not agree with the California Public Utilities Commission’s (CPUC) request for a significant delay,” said Roger J. Peters, Pacific Gas and Electric Company’s senior vice president and general counsel.
As previously determined by the Bankruptcy Court, it will hear each confirmation case separately, beginning with the plan submitted by the CPUC and then moving to PG&E’s reorganization plan immediately afterwards.
At the beginning of recently’s hearing, the CPUC requested the confirmation hearing be postponed, in light of Monday’s Ninth Circuit Court of Appeals decision that threw into question the CPUC’s settlement with Southern California Edison Company. The CPUC’s legal counsel indicated that the decision raised questions about the confirmability of its plan. The CPUC later indicated it was ready to proceed with its plan in November.
Recent events confirm PG&E’s strong belief that it has developed the only practical solution that allows the utility to emerge from Chapter 11 as a financially healthy, investment-grade company, pays creditors in full with interest and gives the State of California a clearly defined path to exit the power buying business. PG&E’s plan achieves these objectives without asking the Bankruptcy Court to raise rates or customers for a bailout.
Source: Pacific Gas & Electric Company