(San Francisco) - PG&E Corporation's (NYSE:
PCG) Board of Directors voted today to terminate the
Corporation's Shareholder Rights Plan upon Pacific Gas
and Electric Company's impending exit from Chapter 11.
The rights issued under the plan are now set to expire
on the date that Pacific Gas and Electric Company's
confirmed Chapter 11 plan of reorganization becomes
The Board adopted the Shareholder Rights Plan in December
2000, when the company faced the extraordinary financial
circumstances brought on by the California energy crisis.
The plan was intended to protect the Corporation's shareholders
in the event the Corporation was presented with inadequate
offers or coercive or unfair takeover tactics.
Today's decision responds to shareholders who supported
a proposal to terminate the plan and to the improving
financial and regulatory circumstances arising from
the utility's impending exit from Chapter 11.