PRESS RELEASES 2002 RELEASE
FOR IMMEDIATE RELEASE
September 09, 2002
Contact: News Department (415) 973-5930
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.

PG&E'S PLAN OF REORGANIZATION RECEIVES OVERWHELMING CREDITOR APPROVAL; CREDITORS SOUNDLY REJECT CPUC PLAN AND OCC'S RECOMMENDATION

PG&E's Plan Receives Approval from 9 of 10 Voting Classes, While CPUC's Alternative Plan Only Receives Approval from 1 of 8 Voting Classes

(San Francisco) -- Pacific Gas and Electric Company today issued the following statement after the independent voting agent, Innisfree M & A, submitted the results of the creditor vote to the U.S. Bankruptcy Court. The final tabulation showed that PG&E's reorganization plan received approval from nine of the ten voting classes:

"We are gratified that our plan of reorganization received overwhelming support from equity holders and creditors, including the large financial institutions, capital market participants and other key organizations.

"Our plan received approval from nine of the ten voting classes. This outcome is an important vote of confidence that our plan will resolve creditor claims, in a financially feasible manner, without seeking a bailout from customers. The only class voting against our plan was Class 7, Energy Service Providers, a class dominated by claims of Enron Corporation; this class voted against both plans and their negative vote will not prevent the confirmation of our Plan.

"Despite a recommendation from the Official Creditors' Committee (OCC) urging creditors to vote affirmatively for both plans, the CPUC's alternative plan was rejected by seven of the eight voting classes, including the unsecured creditors in Class 5. This group, consisting of sophisticated financial institutions and capital market participants, clearly did not believe that the CPUC's plan is credible, even though it purports to pay all creditor claims.

"This vote is a rejection by creditors of the recommendation of the Official Creditors' Committee. In a cover letter sent to all creditors, the OCC urged them to vote affirmatively for both plans.

"After the voting period ended, the CPUC amended its alternative plan, based on an agreement with the Official Creditors' Committee, and is seeking to resolicit the votes of certain creditors. PG&E will respond to that motion on September 17th.

"However, the CPUC and OCC have declared that their amended plan is, in the words of their counsel, 'not a new plan, it involves relatively minor modifications to our existing plan.' In that case, the overwhelming creditor vote against the CPUC plan would be unlikely to change.

"PG&E continues to believe it has developed the only practical solution that allows the utility to emerge from Chapter 11 as an investment-grade company, pays all valid claims in full with interest and achieves these goals without asking the Bankruptcy Court to raise rates or the State for a bailout."

PG&E's plan of reorganization also enjoys broad based support from a number of local and statewide organizations, including labor unions, business associations and community groups.

The Bankruptcy Court confirmation hearings are scheduled to begin on November 12th.


 

Copyright © 2004 - PG&E Corporation. All Rights Reserved . feedback . privacy policy