PG&E Recent Developments

PG&E Corporation and Pacific Gas and Electric Company (“PG&E”) are Debtors in bankruptcy in federal court. Here are some selected reported developments from the past week.


On March 23, 2020, PG&E announced that it had reached a plea agreement on criminal charges related to the devastating 2018 Camp Fire that took over 80 lives. Under the agreement, PG&E will plead guilty to 84 counts of involuntary manslaughter, and pay fines and take other measures, subject to state and federal court approval.

https://www.pgecurrents.com/2020/03/23/pge-reaches-plea-agreement-on-state-charges-related-to-2018-camp-fire/


On March 20, 2020, PG&E announced that it had resolved the Governor’s concerns about the Debtors’ proposed plan of reorganization with certain revisions to the plan, including no shareholder dividends for 3 years and new oversight mechanisms.

https://www.pgecurrents.com/2020/03/20/pg-continues-to-make-progress-toward-timely-chapter-11-exit/


On March 20, 2020, PG&E and the PG&E Corporation Foundation announced that PG&E is donating 480,000 N95 masks and 470,000 surgical masks to the Governor’s Office of Emergency Services and that the Foundation will contribute $1 million to non-profits focused on supporting individuals and families facing food insecurity, as well as small businesses to help with the uncertainty and economic impacts of the public health emergency.

https://www.pgecurrents.com/2020/03/20/pge-donates-nearly-one-million-n95-and-surgical-masks-to-hospitals-emergency-responders/


On March 16, 2020, the Debtors obtained court approval to use up to approximately $23 billion to in financing to help exit bankruptcy, including nearly $11 billion in debt commitments, $9 billion in new equity, and possibly another $3 billion in new shares.

https://www.reuters.com/article/us-pg-e-us-bankruptcy/pge-wins-approval-for-23-billion-bankruptcy-financing-package-idUSKBN2133VQ


On February 27, 2020, the California Public Utilities Commission proposed a $2.14 billion penalty against PG&E for its role in certain wildfires in 2017 and 2018, which was raised from a prior figure of $1.68 billion. PG&E had 20 days to respond. On March 18, 2020, PG&E filed objections to the proposed increase.

https://www.utilitydive.com/news/cpucs-21b-wildfire-fine-could-derail-bankruptcy-exit-financing-commitmen/574532/

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