EDITORS: Please do not use
"Pacific Gas and Electric" or "PG&E" when
referring to PG&E Corporation or its National Energy Group.
The PG&E National Energy Group is not the same company as Pacific
Gas and Electric Company, the utility, and is not regulated by the
California Public Utilities Commission. Customers of Pacific Gas
and Electric Company do not have to buy products or services from
the National Energy Group in order to continue to receive quality
regulated services from Pacific Gas and Electric Company.
AND ELECTRIC COMPANY RESPONDS TO CLAIM FILED BY CALIFORNIA ATTORNEY
SAN FRANCISCO -- Pacific
Gas and Electric Company issued the following statement, in response
to state claims filed by Attorney General Bill Lockyer today:
"It is entirely normal and
expected for state agencies to file claims in bankruptcy cases.
As part of its Plan of Reorganization (POR), the company is committed
to fulfill all of its valid claims, including all legitimate tax
and other governmental obligations.
"As the Attorney General
should know, Pacific Gas and Electric Company proactively asked
for specific permission from the bankruptcy court to proceed with
its ongoing environmental remediation programs, shortly after filing
for Chapter 11 Bankruptcy protection. The court granted our request
on June 26, 2001, and since then, the company's remediation actions
have proceeded unabated. In fact, this year the company's financial
commitment to supporting its robust environmental programs will
exceed previous years' commitments.
"The Attorney General should
also know that the quote attributed to him in his press release
today - that PG&E's Plan of Reorganization seeks to avoid scrutiny
of the Securities and Exchange Commission (SEC) - is completely
false. In fact, the company's POR expressly spells out the approvals
that will be sought from the SEC, in order for the plan to be approved,
and includes a projection that such SEC review will take several
months to obtain (see pages 40-41, 44, 48 and 49 of the POR, and
pages 2, 53, 59 and 108 of the Disclosure Statement for discussions
of the necessary SEC approvals and filings). In fact, page 53 of
the Disclosure Statement includes the following language addressing
In connection with its
review process, the SEC will examine and, as necessary, determine
whether (i) the acquisition will unduly concentrate control of
utility systems, (ii) the purchase price is reasonable, (iii)
the acquisition will unduly complicate the capitalization of the
resulting system, (iv) applicable state laws have been complied
with or preempted, and (v) the transaction will serve the public
interest by facilitating the economic and efficient development
of an integrated public utility system.
"As for the Attorney General's
original demand for an SEC investigation this past summer, we continue
to believe that he is misinterpreting federal law, and the facts
continue to clearly support our position."