PG&E Files Amended Plan of Reorganization; Remains on Track to Achieve Confirmation of Plan Before June 30 Deadline

PG&E Corporation and Pacific Gas and Electric Company (together, “PG&E”) today filed an amended Plan of Reorganization with the Bankruptcy Court in its Chapter 11 cases. The Plan reflects PG&E’s settlements with all major groups of wildfire claimants and keeps PG&E on track to achieve regulatory approval and Bankruptcy Court confirmation in advance of the June 30, 2020, statutory deadline for participation in the state’s new wildfire fund.

The company believes its Plan is confirmable, satisfies all requirements of Assembly Bill 1054 (AB 1054) and complies with the Bankruptcy Code. It is the product of extensive negotiations, treats all victims fairly, protects customers and employees, and will enable PG&E to emerge from Chapter 11 as a financially sound utility positioned to serve California for the long term.

“Today’s filing brings us one step closer to successfully concluding PG&E’s Chapter 11 cases so that the wildfire victims can be compensated as quickly as possible. We appreciate the extensive work by many stakeholders that went into this Plan, in particular the efforts of our state leaders to encourage all parties to work quickly to find common ground,” said CEO and President of PG&E Corporation Bill Johnson.

“We believe our Plan is the best solution for all constituencies, and we look forward to bringing these complex proceedings to their conclusion. In the meantime, we continue to make meaningful changes and additional investments throughout the company to reduce the risk of wildfire and help us continue to deliver safe, reliable energy to our customers,” Johnson said.

The company is committed to working with all stakeholders to confirm support for the Plan, to obtaining regulatory approval from the California Public Utilities Commission consistent with AB 1054, and to achieving confirmation of the Plan by the Bankruptcy Court in advance of June 30, 2020.

PG&E’s Plan: Best Path Forward

PG&E’s Plan prioritizes getting wildfire victims paid soonest by resolving outstanding litigation and eliminating the need for a Tubbs Fire trial and a costly and uncertain estimation process. PG&E assumes its obligations to its employees and creditors without impairments, making sure all parties are treated fairly.

The plan put forward by the Ad Hoc Bondholders group (the Elliott plan) is a last-ditch effort to derail the wildfire victims’ settlements, and force costly, uncertain and protracted litigation. That plan would enrich those firms backing it by charging interest rates on debt that are both above market rate and higher than required by law, rather than putting those ratepayer dollars toward safety, reliability and clean energy investments.