SACRAMENTO (CBS13) — PG&E has proposed a new plan to get out of bankruptcy.
The plan would limit payments to Camp Fire victims who filed claims directly against the utility at $8.4 billion. The utility is offering nearly $17 billion to compensate wildfire victims.
That proposal is likely to set off a legal back and forth with various creditors. Additionally, a bankruptcy judge and the state Public Utilities Commission has to sign off on the plan.
PG&E’s chief financial officer said the plan is designed to lift the utility out of bankruptcy by June of next year.
In a statement, PG&E said, “The Plan filed today proposes a rate-neutral framework that fairly compensates wildfire victims and other stakeholders, prioritizes the interests of our customers and communities, and meets PG&E’s legal obligations.”
According to PG&E, the plan is comprised of:
- Compensation of wildfire victims and certain limited public entities from a trust funded for their benefit in an amount to be determined by the Bankruptcy Court not to exceed $8.4 billion;
- Compensation of insurance subrogation claimants from a trust funded for their benefit in an amount to be determined by the Bankruptcy Court not to exceed $8.5 billion;
- Payment of $1 billion in full settlement of the claims of certain public entities relating to the wildfires, as previously announced;
- Payment in full, with interest, of all prepetition funded debt obligations, all prepetition trade claims and employee-related claims;
- Assumption of all power purchase agreements and community choice aggregation servicing agreements;
- Assumption of all pension obligations, other employee obligations, and collective bargaining agreements with labor;
- Future participation in the state wildfire fund established by Assembly Bill 1054; and
- Satisfaction of the requirements of Assembly Bill 1054.