PG&E says Calif. PUC should detail risks of its plan

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Megawatt Daily

Pacific Gas & Electric wants the California Public Utilities Commission to tell the bankruptcy court the risks inherent in the regulators’ reorganization plan for the utility, according to a PG&E objection filed to the court.

The utility wants the PUC‘s ”risk” details included in a disclosure statement, a type of proxy statement, which is part of the regulator’s alternative reorganization plan.

In its filing, PG&E said that the PUC‘s disclosure statement ”may be misleading” and should be amended to reflect uncertainties. Those include a PUC order seeking public stakeholder comment on its alternate and a lawsuit filed by the Foundation for Taxpayer and Consumer Rights seeking to prevent the PUC from forming settlements, such as its PG&E plan, without public hearings.

PG&E argued to the court that the outcome of these proceedings could force the PUC to change or withdraw its plan at any time. Another risk of the PUC plan is that it does not require investment-grade rating for the utility, PG&E said.

”The CPUC’s alternative plan states the requirement that the utility’s investment grade credit rating be restored can be waived at any time,” PG&E said. ”Receiving an investment grade credit rating is an essential requirement in PG&E‘s plan of reorganization, which may not be waived. Without an investment grade credit rating, the likelihood of success for the CPUC’s plan is highly uncertain, which would likely force the state of California to remain in the power buying business for several more years.”

A hearing on objections to the PUC‘s plan is scheduled for Thursday with creditor voting on the PG&E and PUC plans set for mid-June. The PUC had no statement on PG&E‘s objections.

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