EDITORS: Please do not use
"Pacific Gas and Electric" or "PG&E" when
referring to PG&E Corporation or its National Energy Group.
The PG&E National Energy Group is not the same company as Pacific
Gas and Electric Company, the utility, and is not regulated by the
California Public Utilities Commission. Customers of Pacific Gas
and Electric Company do not have to buy products or services from
the National Energy Group in order to continue to receive quality
regulated services from Pacific Gas and Electric Company.
EXIT PLAN BENEFICIAL FOR ALL CALIFORNIANS, REQUIRES NO RATE INCREASE
OR BAILOUT AND ENSURES CONTINUED REGULATORY OVERSIGHT
(San Francisco, CA)- Pacific
Gas and Electric Company's plan for exiting bankruptcy is legal,
requires no rate increase or state bailout, and ensures continued
regulatory oversight. These were the key messages of a presentation
delivered today to the Board of the California Chamber of Commerce
by Robert D. Glynn, Jr., Chairman, CEO, and President of PG&E Corporation
In his remarks Glynn emphasized
that Pacific Gas and Electric Company's Plan of Reorganization has
achieved the necessary balance between ensuring that all valid creditor
claims are paid in full and the company is returned to financial
health so that it can grow the energy infrastructure in California.
"We have a remarkably simple
plan," said Glynn. "It restructures our business so that we can
refinance our existing assets and pay our debts. And, it requires
no rate increase or state bailout."
Glynn noted that a cornerstone
of the plan is continued regulatory oversight of all of Pacific
Gas and Electric Company's current assets. "No where does our plan
ask for the deregulation of any of our assets," said Glynn.
"The distribution of gas
and electricity and the setting of retail rates will continue to
be overseen by the Public Utilities Commission," he added.
Glynn also called the plan
a win for employees of Pacific Gas and Electric Company because
power plants and gas and electric transmission businesses created
through the plan will be California companies employing essentially
the same skilled teams who are currently running them safely and
The plan also provides for
a long-term power supply contract of up to 12-years to Pacific Gas
and Electric Company for its customers.
"In fact," Glynn told members
of the California Chamber of Commerce Board, "power under this contract
will be the lowest cost major part of Pacific Gas and Electric Company's
Glynn closed his remarks
by addressing the issue of whether Pacific Gas and Electric Company's
plan for exiting bankruptcy "breaks the law."
"This statement makes for
a good sound bite," said Glynn, "but it has no substance. Federal
law empowers the bankruptcy court to set aside state law in approving
a plan of reorganization. We are asking the Court to do just that
as necessary to approve our plan."