Judge Bars Ratepayers Panel From PG&E; Case

A federal judge Tuesday reaffirmed his decision to bar a ratepayers committee from Pacific Gas & Electric Co.’s bankruptcy case and denounced the committee’s attorney for suggesting that the action could prevent PG&E; customers from receiving refunds for excessive energy charges.

Judge Dennis Montali ruled against a U.S. trustee and the ratepayers committee in deciding that ratepayers as a group had no claims and were not creditors when PG&E; filed for bankruptcy on April 6.

But Montali criticized “misguided remarks” by a committee attorney on July 5 and news media accounts that followed the hearing.

The judge said the reports left the misconception that by disallowing a ratepayers committee, he would reject all claims of ratepayers and they could lose out on future refunds.

The judge and PG&E; officials emphasized that there are no matters involving PG&E; customer refunds before the state Public Utilities Commission.

State officials are seeking about $9 billion in refunds, however, from the Federal Energy Regulatory Commission for alleged overcharges to Californians by energy companies since last year.

The distribution of any ratepayer refunds would be decided by the PUC, and customers would be paid whether or not they filed Bankruptcy Court claims by a Sept. 5 deadline, the judge and PG&E; attorneys said.

The judge took the highly unusual step of directing PG&E; and U.S. Trustee Linda Ekstrom Stanley to consider remedies to allay any confusion among PG&E;’s 5.5 million customers.

He suggested publishing clarifications in newspapers that carried the erroneous information, in PG&E; customer bills and on Web sites.

Stanley had formed a ratepayers committee of business, government and consumer representatives, saying they will be affected by PG&E;’s Chapter 11 reorganization.

But Montali decided that ratepayers do not qualify as creditors under bankruptcy law and are not entitled to official status that allows them to participate in the bankruptcy and receive funding from PG&E.;

Stanley said she has not yet decided whether to appeal the ruling to federal district court.