PG&E; Plan Restricts Regulators
PG&E; Corp.’s reorganization plan for Pacific Gas & Electric, California’s largest utility, restricts state regulators from setting rates for nine years, a California Public Utility commissioner said.
“The commission cannot be powerless to protect PG&E;’s ratepayers from unjust and unreasonable rates or practices during the nine-year term of the proposed settlement,” Lorretta Lynch said in one of three alternative proposed settlements submitted by commissioners.
The utility and PUC staff in June forged a settlement that would pay creditors $12 billion, restore PG&E;’s dividend by 2005 and return the company’s credit rating to investment grade. A majority of the five commissioners must approve the plan. The commission plans a vote Dec. 18.
Pacific Gas filed for bankruptcy protection in April 2001 after incurring $9 billion in debts buying power for more than it could charge customers.
PG&E; shares fell 12 cents to $25.41 on the New York Stock Exchange.
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