Plan of Reorganization Commitments
As part of our Plan of Reorganization for emergence from Chapter 11, PG&E made a series of commitments, all designed to further prioritize safety. PG&E made these commitments working with the Governor's Office and incorporating guidance from the President of the California Public Utilities Commission (CPUC).
The commitments include:
- Supporting the CPUC’s enactment of measures to strengthen PG&E’s governance and operations, including enhanced regulatory oversight and enforcement that provides course-correction tools as well as stronger enforcement if it becomes necessary;
- Hosting a state-appointed observer to provide the state with insight into PG&E’s progress on safety goals;
- Appointing an independent safety monitor when the term of the court-appointed Federal Monitor expires;
- Establishing newly expanded roles of Chief Risk Officer and Chief Safety Officer, with both reporting directly to the PG&E Corporation CEO and President;
- Forming an Independent Safety Oversight Committee to provide independent review of operations, including compliance, safety leadership, and operational performance;
- Assuming all collective bargaining agreements with labor unions, pension obligations, and other employee obligations, Community Choice Aggregation servicing agreements, and all power purchase agreements as part of a broader commitment to California’s clean energy future;
- Reforming executive compensation to further tie it to safety performance and customer experience;
- A commitment that PG&E Corporation will not reinstate a common stock dividend until it has recognized $6.2 billion in non-GAAP core earnings;
- Filing a proposal with the CPUC requesting a rate-neutral $7.5 billion securitization transaction after PG&E emerges from Chapter 11 in order to finance costs in an efficient manner that benefits customers and accelerates payment to wildfire victims; and
- Committing not to seek recovery in customer rates of any portion of the amounts that will be paid to victims of the 2015, 2017, and 2018 wildfires under the Plan when PG&E emerges from Chapter 11 (except through the rate-neutral securitization transaction).