(SAN FRANCISCO) - At a status conference held this
morning, Pacific Gas and Electric Company today provided
the U.S. Bankruptcy Court with preliminary results
of the creditor vote, showing overwhelming support
for the plan of reorganization that embodies the terms
of the proposed settlement agreement between PG&E
and the staff of the California Public Utilities Commission.
The final results will be officially submitted to
the Court next week. The utility issued the following
statement on the preliminary results of the creditor
"Pacific Gas and Electric Company is gratified that
more than 97% of the voting creditors supported the
plan of reorganization. The plan received approval from
all of the creditor classes that voted."
"This outcome is another positive indication that the
proposed settlement agreement will resolve the Chapter
11 case in a manner that is fair to customers, employees
and shareholders. It will allow the utility to resolve
creditor claims, reduce customer rates beginning in
2004, and emerge from Chapter 11 as a financially healthy,
investment grade company."
PG&E's plan of reorganization enjoys broad based
support from a number of local and statewide organizations,
including labor unions, business associations, and community
Following the June 19th announcement of the proposed
settlement agreement between PG&E and the CPUC staff,
PG&E and the Official Creditors' Committee submitted
a new plan of reorganization to the Bankruptcy Court.
Eligible creditors had the opportunity to vote on the
new plan between August 15 and September 29.
The Bankruptcy Court confirmation hearings are scheduled
to begin on November 10, 2003. CPUC hearings to consider
the proposed settlement were completed on September
26, 2003, and the full Commission is scheduled to issue
its final decision in late December 2003. Assuming Bankruptcy
Court confirmation, CPUC approval, and satisfaction
of the other conditions to implementation of the plan
of reorganization, PG&E believes it is on track
to emerge from Chapter 11 in the first quarter of 2004.