SAN FRANCISCO - Roger J. Peters, Pacific Gas and
Electric Company's senior vice president and general
counsel today issued the following statement after Loretta
Lynch and Carl Wood filed a motion for stay of implementation
of the company's bankruptcy confirmation order in U.S.
"It is regrettable Ms. Lynch and Mr. Wood have chosen
to file their motion for stay asking a federal district
court to prevent Pacific Gas and Electric Company from
emerging from Chapter 11 as a financially healthy utility.
The U.S. Bankruptcy Court and the California Public
Utilities Commission (CPUC) addressed their arguments
over three months ago.
"These bodies repeatedly determined that the Bankruptcy
Court's confirmation order and the settlement agreement
between PG&E and the CPUC are consistent with state
law and enforceable under federal law. As a result,
we firmly believe this motion is without merit and the
U.S. District Court, like the U.S. Bankruptcy Court,
should refuse to stay the confirmation order."
"The CPUC and PG&E have moved forward together
in an open and public process to facilitate the settlement
and associated financing activities required for the
company to pay its creditors in full and exit bankruptcy.
Ms. Lynch and Mr. Wood's arguments were rejected repeatedly
by their fellow commissioners on the CPUC. Despite this
fact, they have chosen to deliberately attempt to derail
all the activities which have occurred over the past
three months in a last minute attempt to prevent the
settlement agreement from going effective, and allowing
us to emerge from Chapter 11.
"Only now, after the company has received its investment
grade credit ratings, and priced and sold $6.7 billion
in bonds, are Ms. Lynch and Mr. Wood bringing this challenge.
We find it irresponsible that they would put our customers
at risk for tens of millions of dollars in higher financing
costs that would result if their motion were to prevent
the company from being able to take advantage of today's
historically low interest rates."