SAN FRANCISCO, Dec. 15, 2003 — PG&E Corp. and Pacific Gas and Electric Co. issued the following statement after the U.S. Bankruptcy Court issued a decision finding that its plan of reorganization is legal and confirmable:
“With today’s [Friday’s] Bankruptcy Court decision stating that the plan of reorganization is legal and confirmable, approval by the California Public Utilities Commission (CPUC) is the only thing standing between our customers receiving immediate, significant rate reductions estimated at least $670 million starting in January 2004.
“Next week, the CPUC will have the opportunity to close the door on a difficult chapter in California’s energy history, and allow the utility to emerge from Chapter 11 as a financially healthy, investment-grade company.
“In his decision, Judge Montali wrote ‘ … the court will approve the Settlement Agreement and will enter a separate Confirmation Order confirming the plan, provided the Commission approves the Settlement Agreement’ referring specifically to the settlement agreement that PG&E reached with the CPUC staff, under the direction of Judge Randall Newsome in June 2003.”
The CPUC is scheduled to take up the proposed settlement agreement at its December 18th meeting.