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PG&E Seeking $14 Billion in Restructuring Plan

September 6, 2019

The post PG&E Seeking $ 14 Billion in Restructuring Plan appeared first on POWER Magazine.

Pacific Gas & Electric (PG&E) reportedly will soon file a restructuring plan that includes more than $ 14 billion in equity commitments, as the utility looks to recover from billions of dollars in liabilities tied to its role in California wildfires that caused the company to file the largest utility bankruptcy in U.S. history.

Bloomberg on September 5 reported that PG&E’s plan, due to be filed September 9, will use a combination of debt and equity to cover the claims from wildfires that state officials determined were caused by the utility’s equipment. PG&E has not provided an estimate for those claims, though Bloomberg reported that the company has assurances from financial groups that it could raise as much as $ 40 billion in debt and equity to cover the wildfire claims and other bankruptcy-related costs.

The report said PG&E’s plan will commit to settling fire claims, continuing current power purchase agreements (PPAs), and exiting bankruptcy without increasing electricity rates.…

PG&E Asks Bankruptcy Judge to Back Restructured Power Deals

August 2, 2019

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California utility Pacific Gas & Electric (PG&E) has asked the judge overseeing its bankruptcy case to support restructured deals with some of the utility’s power suppliers in an effort to reduce the price PG&E pays for those companies’ electricity.

The fate of $ 42 billion worth of long-term power purchase agreements (PPAs) is a key component of PG&E’s bankruptcy and is being closely watched by the power industry, which relies on long-term power contracts to attract financing.

PG&E’s court filing comes just weeks after California Gov. Gavin Newsom signed into law a measure to create a $ 21 billion state wildfire fund, designed to help the state’s three investor-owned utilities pay for damages resulting from wildfires in the state.

Allan Marks, a partner in the Los Angeles office of global law firm Milbank LLP, working in Milbank’s Project, Energy and Infrastructure Finance practice, told POWER, “In general, [the wildfire fund] is designed to provide liquidity if utilities aren’t able to handle wildfire claims without becoming insolvent.”…

PG&E Files for Bankruptcy, Prepares to Reorganize

January 30, 2019

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California utility Pacific Gas and Electric (PG&E) filed for Chapter 11 bankruptcy on Jan. 29, as the company faces as much as $ 30 billion in potential liabilities for its role in a series of wildfires in the state. The filing was expected after the company notified its workers two weeks ago it was preparing a reorganization plan.

PG&E is working on a multibillion-dollar debtor-in-possession financing deal with several banks to provide the company funding to continue operations during its reorganization. The California Public Utilities Commission approved the company’s plans to tap up to $ 6 billion in financing to help it operate while under bankruptcy protection, and the company in a statement Tuesday said it will ask the bankruptcy court to approve $ 5.5 billion in financing.

John Simon, PGE’s interim CEO, said in a statement, “We are fully committed to enhancing our wildfire safety efforts, as well as helping restoration and rebuilding efforts across the communities impacted by the devastating Northern California wildfires.…

PG&E: Judge’s Proposal Could Cost Utility $150 Billion

January 24, 2019

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Pacific Gas & Electric (PG&E) on Jan. 23 said a federal judge’s proposal that the utility mitigate fire danger in its service territory by trimming trees, along with inspecting and repairing thousands of miles of power lines, could cost the company as much as $ 150 billion this year.

William Alsup, a judge in the U.S. District Court for Northern California, earlier this month said he could order PG&E to remove or trim all trees that could threaten the utility’s equipment and possibly lead to wildfires. The judge said the work would need to be done by June 21.

The California Public Utilities Commission (CPUC), which regulates the state’s utilities, is expected to express its opinion of Alsup’s proposal by Jan. 25. A hearing on the proposal is scheduled for Jan. 30 in San Francisco, the day after PG&E is expected to file for bankruptcy.

Alsup is supervising PG&E’s probation term that began in 2017 after PG&E was convicted of felony charges stemming from a 2010 natural gas pipeline explosion in San Bruno, Calif.,…

PG&E Says It Will File Chapter 11 Bankruptcy

January 22, 2019

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California utility PG&E Corp. on Jan. 14 gave its workers the state-required 15-day advance notice of its intent to file a Chapter 11 bankruptcy. The company on Monday said its electric and natural gas service to customers should not be impacted during its reorganization, which comes as PG&E faces billions of dollars in liabilities related to the role of its equipment in a series of deadly wildfires over the past two years.

The company late Sunday said that PG&E CEO Geisha Williams had stepped down, with John Simon named interim CEO. PG&E’s board said it would search for a new chief executive with “extensive operational and safety expertise.” Williams had been CEO since 2017. Simon has held various roles with the company since 2007, most recently as executive vice president and general counsel.

PG&E in a news release Monday said the company “and its wholly owned subsidiary Pacific Gas and Electric Company currently intend to file petitions to reorganize under Chapter 11 of the U.S.…

CPUC Backs PG&E Plan to Retire Diablo Canyon Nuclear Plant

January 12, 2018

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California regulators have approved Pacific Gas & Electric’s (PG&E’s) application to retire the Diablo Canyon nuclear plant by year-end 2025, ending a protracted battle over the generating station that pitted local economic interests against environmentalists and other opponents of nuclear power.

The state Public Utilities Commission (CPUC) on January 11 voted unanimously to accept PG&E’s request to decommission the two reactors at the plant near Avila Beach when operating licenses for the units expire in November 2024 and August 2025, respectively. The 2,256-MW plant is the lone remaining operating nuclear facility in California.

The CPUC also authorized PG&E to recover from ratepayers $ 241.2 million in costs associated with the retirement: $ 211.3 million to keep employees until the plant in closed; $ 11.3 million to retrain displaced workers; and $ 18.6 million for operating license renewal costs.

CPUC President Michael Picker, the commissioner assigned to today’s proceeding, said “Diablo Canyon has been a source of reliable and clean electricity, and employment, in San Luis Obispo [County] for many years now.…