On
A Five-Step
Description of the Reorganization Plan:
1)
Reorganize existing operations into four separate businesses
Electric and Gas Distribution (Pacific Gas & Electric
Company)
Generation (Gen)
Electric Transmission (ETrans)
Gas Transmission (GTrans)
2) Pacific Gas
and Electric Company will be “spun-off,” to become
a stand-alone,
publicly traded company with no affiliation with
PG&E
Corporation.
3) Gen,
ETrans, and GTrans will operate as separate companies
under
PG&E Corporation.
4) The new
businesses will be refinanced based on projected cash
flows and
debt capacity.
5) All valid
claims will be paid in full, with interest, using cash and notes. [1]
This plan is aimed to
enable PG&E to come out of Chapter 11 and continue providing service, pay
all debts including interest, and to lay a foundation that will prevent the
same problems that occurred in the first place without raising rates or asking
for a bailout.
Click here for a
timeline of PG&E’s future plans.
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