PG&E Corporation (“Holdco”) and its subsidiary, Pacific Gas & Electric Company (the “Utility” and together with Holdco, “PG&E”) announced on Jan. 13, 2019 that it expects to file for Chapter 11 bankruptcy protection on or around Jan. 29, 2019, right around the conclusion of a mandatory 15-day notice requirement under California law. See Form 8-K of PG&E Corp. and Pacific Gas & Electric Co. (Jan. 13, 2019). Such a filing would represent the second time PG&E resorted to protection under the U.S. Bankruptcy Code. PG&E filed for bankruptcy on April 6, 2001 and emerged three years later, on April 12, 2004. See Case No. 01-30923-DM (Bankr. N.D. Cal.). The challenges PG&E has faced since wildfires began consuming large swaths of California are well-known and has fueled speculation about a bankruptcy filing. But less well-understood and appreciated are the legal and regulatory issues confronting PG&E and other similarly-situated California utilities. As we’ll see, those legal and regulatory issues present critical complications in a potential second PG&E bankruptcy.

Background on PG&E

PG&E, incorporated in California in 1905, is one of the largest combined natural gas and electrical energy companies in the United States. Based in San Francisco, it employs nearly 20,000 people. Its primary business is the transmission and delivery of energy—both natural gas and electricity—to nearly 16 million customers in Northern and Central California. The rates PG&E charges its customers are predominantly set by its principal regulator, the California Public Utility Commission (“CPUC”).

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Advance® Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]