Court Is Urged to Reject PG&E; Bankruptcy Plan
California regulators asked a federal judge Tuesday to reject Pacific Gas & Electric’s bankruptcy reorganization plan, calling it a “regulatory jailbreak of a scope never before attempted in a bankruptcy case.”
The plan is an attempt “to escape from state regulatory oversight, and not simply to adjust the utility’s relationship with its creditors and restore it to financial health,” the Public Utilities Commission said in a filing in U.S. Bankruptcy Court.
The PG&E; plan would split the company in two, shifting its hydroelectric network, Diablo Canyon nuclear power plant and gas and electric transmission grids out from under state regulation.
PG&E;’s Ron Low called the filing mere “repackaging” of old issues.
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