SAN FRANCISCO – Bankrupt Pacific Gas and Electric Co. intends to forge ahead with its reorganization plan and also appeal a federal judge’s ruling that bankruptcy law does not expressly permit businesses to pre-empt state law while getting back on their feet.
Separately on Thursday, the official PG&E creditor committee said it could not support an alternate reorganization plan created by state regulators. The utility filed a request asking U.S. Bankruptcy Judge U.S. Montali to give PG&E until the end of June to promote its plan without any competitors.
In a U.S. Bankruptcy Court filing, California’s largest utility said it would move forward on several tracks, including amending the plan to take Montali’s concerns into account and arguing that the state has waived its right not to be overruled by the federal government.
The utility also said it would seek an appeal of Montali’s ruling.
“The Court’s ruling allowed us to both move forward with the plan of reorganization and file an appeal. We are taking advantage of both options,” said Ron Low, a PG&E spokesman.
PG&E wants to transfer power plants and transmission lines worth $8 billion into new federally regulated subsidiaries.
It would borrow against those assets to raise the $13.2 billion it claims it owes creditors. In the process, it would have to pre-empt dozens of state laws and regulations.
The state Public Utilities Commission is trying to block the plan to avoid control over how much PG&E can charge for the electricity it generates at its power plants.