PG&E Reiterates Commitment to Its Plan of Reorganization; Is Confident that Its Plan Is the Best Solution for All Constituencies

PG&E Corporation and Pacific Gas and Electric Company (together, “PG&E”) today reiterated the key features of PG&E’s fully funded Plan of Reorganization. The Plan, which is the product of extensive negotiations, treats all stakeholders fairly, protects customers, will satisfy all wildfire claims in full, and presents a viable path for PG&E to achieve regulatory approval and confirmation of its Plan in advance of the June 30, 2020 statutory deadline. By resolving the Chapter 11 prior to the end of June 2020, PG&E will be able to participate in the state’s new go-forward wildfire fund established under Assembly Bill 1054.

PG&E is confident that its Plan charts the best course for its emergence as a financially sound utility positioned to serve its customers and contribute to California’s clean energy future.

Crucially, PG&E’s Plan complies with all requirements of the Bankruptcy Code and does not result in a change of control that would impose regulatory hurdles to plan confirmation. In addition, PG&E’s Plan treats all constituencies fairly, minimizing the likelihood of protracted litigation that would further delay payments to wildfire victims and jeopardize the customer and public benefits that result from the company’s participation in the go-forward wildfire fund.

PG&E has announced settlements with two of three major groups of wildfire claims holders in its Chapter 11—namely cities and counties, and insurance companies and other entities which have already paid wildfire claims for the 2017 and 2018 wildfires—and remains committed to working with the individual claimants to fairly and equitably resolve their claims. PG&E’s Plan proposes a framework that protects customers while allowing PG&E to meet its legal obligations.

Debt Financing Commitments Finalized

This week, PG&E confirmed that it has finalized commitments from several leading financial institutions totaling $34.5 billion to provide debt financing in support of its Plan. PG&E has also received aggregate equity commitments in excess of its $14 billion target from a broad array of investors, including current shareholders, bondholders, and parties not currently invested in PG&E’s equity or debt securities. All proceeds of the equity commitments would be used to pay wildfire victims and help fund PG&E’s contributions to the state wildfire fund.