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.
UPDATE: PACIFIC GAS AND ELECTRIC COMPANY ISSUES STATEMENT ON CPUC'S
ALTERNATE PLAN OF REORGANIZATION
SAN FRANCISCO - Pacific
Gas and Electric Company today issued the following statement after
the California Public Utilities Commission (CPUC) held a press conference
to discuss its alternate plan of reorganization:
"The CPUC's second attempt
to develop an alternative bankruptcy plan is no more practical or
confirmable than their first plan. Admitting that their first effort
fell $4.5 billion short, their second attempt seeks to close that
gap by issuing billions in new debt and through a scheme to issue
stock in the utility to raise cash. We believe the CPUC's plan could
not be confirmed or implemented.
"More than a year late,
the Commission finally recognizes the need to have investment grade
utility companies so that the state can exit the procurement business.
Yet their plan makes none of the fundamental regulatory commitments
needed to achieve or assure investment grade status.
"The CPUC's plan to eliminate
any return on equity violates federal and state law and would prompt
substantial litigation. The proposed equity sale violates the rights
of shareholders. It also would greatly harm tens of thousands of
our employees and retirees whose 401(k) accounts, and retirement
plans include significant amounts of PG&E stock. They and thousands
of small shareholders, many on fixed incomes, have seen their investments
decimated by the actions of the CPUC over the past two years."