PG&E Submits Chapter 11 Plan of Reorganization Testimony to State Regulators & Updated Plan of Reorganization to Bankruptcy C...
February 01 2020 - 12:08AM
Business Wire
New Filings Provide Update on Key Elements of
Plan to Exit Bankruptcy as a Reimagined Utility
Company’s Bankruptcy Plan Is on Track to be
Confirmed by June 30 So PG&E Can Pay Victims and Participate in
the State’s Go-Forward Wildfire Fund
PG&E Corporation and Pacific Gas and Electric Company
(together, “PG&E” or the “company”) today submitted regulatory
and court filings outlining the key elements of the company’s
updated Chapter 11 Plan of Reorganization. PG&E submitted
testimony in the California Public Utilities Commission (CPUC) Plan
of Reorganization proceeding and filed its updated Plan with the
Bankruptcy Court.
Based on these filings, PG&E remains on track to have its
Chapter 11 Plan confirmed by June 30, 2020, the deadline for
participating in the state’s new go-forward wildfire fund. Upon
emergence from Chapter 11, PG&E will be a financially stable
company positioned to continue prioritizing safe operations and
customer focus while meeting California’s energy needs and clean
energy goals in a changed climate.
“Under our Plan, the company will emerge from Chapter 11 as a
reimagined utility with an enhanced safety structure, improved
operations, and a board and management team focused on providing
the safe, reliable, and clean energy our customers expect and
deserve. Our 23,000 PG&E employees are striving every day to
deliver that service and to build the utility of the future. We are
committed to emerge from Chapter 11 by June 30, 2020, in a manner
that allows us to help lead California toward the future, meeting
the highest safety, governance, and operational standards,” said
CEO and President of PG&E Corporation Bill Johnson.
As explained in its testimony, PG&E believes its Plan meets
both the letter and spirit of Assembly Bill (AB) 1054, including
being rate neutral on average to customers. The Plan also addresses
concerns the Governor raised in his December 13, 2019, public
letter to the company. PG&E appreciates the Governor’s input
and is open to further discussions with the Governor’s Office and
other stakeholders should they have additional input as the process
unfolds. PG&E looks forward to participating fully in the
CPUC’s proceeding to review its updated Plan.
Key updated safety, governance, and operational elements of the
Plan include:
- Refreshing the Boards of Directors of PG&E Corporation and
Pacific Gas and Electric Company so that the Boards will have the
necessary expertise and skills to oversee the company
post-emergence;
- Implementing a plan to regionalize the company’s operations and
its infrastructure to enhance the company’s focus on local
communities and customers;
- Further strengthening PG&E’s corporate governance by
appointing an independent safety advisor after the term of the
court-appointed Federal Monitor expires;
- Establishing a newly expanded role of Chief Risk Officer who
will report directly to the PG&E Corporation CEO and have
oversight of risks associated with PG&E’s operations;
- Establishing a newly expanded role of Chief Safety Officer who
will report directly to the PG&E Corporation CEO and have
oversight of PG&E’s strategy to further improve public and
workforce safety;
- Forming an Independent Safety Oversight Committee (ISOC) with
non-PG&E employees to provide independent review of the
company’s operations, including safety and regulatory compliance,
safety leadership, and operational performance;
- Committing to enhanced safety metrics and stricter regulatory
oversight with escalating enforcement mechanisms;
- Reforming executive compensation to further tie it to safety
performance; and
- Assuming all pension obligations, other employee obligations,
and collective bargaining agreements with labor unions, and all
power purchase agreements and community choice aggregation
servicing agreements.
Key updated financial elements of the Plan include:
- Paying value in excess of $25 billion to wildfire victims
through the settlements reached with individual victims,
subrogation claimants, and public entities; and
- Emerging with a financing structure that protects customer
rates and positions the company for long term success. This
includes saving PG&E’s customers nearly $1 billion through the
previously announced settlement with noteholders and contributing
shareholder credits of approximately $8 billion so that the plan is
neutral on average to customers.
Today’s filings are available on PG&E Corporation’s website
at this link.
Forward-Looking Statements
This press release includes forward-looking statements that are
not historical facts, including statements about the beliefs,
expectations, estimates, future plans and strategies of PG&E
Corporation and Pacific Gas and Electric Company (the “Utility”),
including but not limited to their Chapter 11 emergence plan. These
statements are based on current expectations and assumptions, which
management believes are reasonable, and on information currently
available to management, but are necessarily subject to various
risks and uncertainties, including the possibility that the
conditions to confirmation of or effectiveness of the Plan will not
be satisfied. In addition to the risk that these assumptions prove
to be inaccurate, factors that could cause actual results to differ
materially from those contemplated by the forward-looking
statements include factors disclosed in PG&E Corporation and
the Utility’s joint Annual Report on Form 10-K for the year ended
December 31, 2018, their joint Quarterly Reports on Form 10-Q for
the quarters ended March 31, 2019, June 30, 2019 and September 30,
2019, and their subsequent reports filed with the Securities and
Exchange Commission. Additional factors include, but are not
limited to, those associated with the Chapter 11 cases of PG&E
Corporation and the Utility that commenced on January 29, 2019.
PG&E Corporation and the Utility undertake no obligation to
publicly update or revise any forward-looking statements, whether
due to new information, future events or otherwise, except to the
extent required by law.
No Securities Offering
This is not an offering of securities and securities may not be
offered or sold absent registration or an applicable exemption from
the registration requirements.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) is a holding company
headquartered in San Francisco. It is the parent company of Pacific
Gas and Electric Company, an energy company that serves 16 million
Californians across a 70,000-square-mile service area in Northern
and Central California. Each of PG&E Corporation and the
Utility is a separate entity, with distinct creditors and
claimants, and is subject to separate laws, rules and regulations.
For more information, visit pgecorp.com.
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