(Orlando, Fla.) - In remarks to investors and analysts
today at the Edison Electric Institute (EEI) Financial
Conference, Robert D. Glynn, Jr., Chairman, CEO and
President of PG&E Corporation (NYSE: PCG) said
the company is “on a clear path to stability
and increased financial performance.”
Glynn discussed the proposed settlement agreement to
resolve Pacific Gas and Electric Company's Chapter 11
case, including elements of the proposed settlement
that would strengthen the utility's financial health.
These elements include investment-grade credit ratings
for Pacific Gas and Electric Company, an authorized
return on equity of 11.22 percent, and the establishment
of a $2.21 billion after-tax ”regulatory asset,” which
would be included in the utility's rate base.
“The proposed settlement agreement and a new
plan of reorganization are proceeding on schedule through
approval processes at the California Public Utilities
Commission and in the Bankruptcy Court,” said
Glynn. Earlier this month, it was announced that more
than 97 percent of voting creditors voted to support
the new plan of reorganization.
“We believe the agreement is on track to achieve
the first quarter 2004 target for the utility's exit
from Chapter 11.”
Glynn also cited recent progress toward a more stable
regulatory environment in California, including a proposed
2003 General Rate Case (GRC) settlement submitted last
month for approval at the California Public Utilities
Commission (CPUC). The proposed GRC settlement was entered
into by Pacific Gas and Electric Company, the CPUC's
Office of Ratepayer Advocates, The Utility Reform Network
and other stakeholders. The proposed GRC settlement
would provide revenues that would allow the utility
the opportunity to earn its authorized return on equity,
and would provide a mechanism for timely and predictable
revenue adjustments in 2004, 2005 and 2006 to cover
costs associated with ratebase growth and inflation.
Glynn also reaffirmed the company's previously issued
earnings guidance for 2003 and 2004, and he reiterated
the company's aspiration to pay dividends in the latter
part of 2005.
A webcast replay of Glynn's presentation is available
on the PG&E Corporation web site, www.37rehuo.net.
The statements in this release and in Mr. Glynn's presentation
regarding management's beliefs and expectations for
increased financial performance, shareholder value and
future dividends are forward-looking statements that
are subject to a number of risks and uncertainties.
Actual results could differ materially depending on
many factors, including whether the proposed settlement
agreements in the utility's Chapter 11 case and the
GRC proceeding are approved by the CPUC, whether the
proposed Chapter 11 settlement plan is timely implemented,
whether the assumptions underlying the company's financial
projections furnished to the Securities and Exchange
Commission on a Form 8-K dated October 14, 2003 are
realized, the outcome of various regulatory proceedings,
and other factors discussed in PG&E Corporation's
reports filed with the Securities and Exchange Commission.