PG&E Corporate Responsibility and Sustainability Report 2018

PG&E Chapter 11 Update

PG&E Chapter 11 Update

Prompted by potential liabilities stemming from devastating wildfires in 2017 and 2018, on January 29, 2019, PG&E Corporation and its primary operating subsidiary, Pacific Gas and Electric Company, filed for Chapter 11 in the United States Bankruptcy Court for the Northern District of California.

The ramifications across PG&E are sweeping. Throughout this process, we are committed to making the necessary fundamental changes to meet the current and future needs of the customers and communities we have the privilege to serve.

We have implemented changes in leadership, governance, operations and oversight to build a safer and more sustainable company, including naming new PG&E Corporation CEO and President Bill Johnson and Pacific Gas and Electric Company CEO and President Andy Vesey, both of whom bring proven track records of operational excellence and transparency. In addition to the operational improvements underway, this new leadership will lead the change of cultural behaviors needed over time, while retaining key talent throughout the enterprise. We’ll continue to make the changes necessary to achieve our goals.

September 9, 2019 marked a key milestone when PG&E Corporation and Pacific Gas and Electric Company filed our Plan of Reorganization. The Plan—a critical step in the multi-stage Chapter 11 process—puts us on track to emerge from bankruptcy as a financially sound energy company in advance of a June 30, 2020 statutory deadline without impacts to customer rates. It also provides a path for meeting our key objectives to fairly compensate wildfire victims as quickly as possible; make substantial investments in operational safety improvements; and meet our commitment to California’s clean energy future.

We are prioritizing operational safety and reliability, engaging in extensive community outreach and identifying process improvements and responsible cost reductions to moderate the customer impact of our substantial infrastructure and safety investments.

Throughout this process, we will continue to support California’s clean energy leadership, consistent with our long history of helping California lead the way toward achieving ambitious climate goals. In fact, we are expanding our efforts to include support for state and local decarbonization initiatives.

While making the key investments needed to sustain and enable our state’s bold clean-energy vision, we will also emphasize a focus on economic inclusiveness that reflects the diversity of our service area. With effective management, prudent investment in priority areas, and a focus on achieving companywide safety and operational excellence, PG&E’s five-year outlook is one of significant growth and sustained financial performance.

More Information

For updates on our Chapter 11 progress, please visit www.pge.com/reorganization.