PG&E files amended reorganization plan following bankruptcy

PG&E Corporation and Pacific Gas and Electric Company filed an amended Plan of Reorganization with the Bankruptcy Court in its Chapter 11 cases Tuesday. The plan reflects PG&E's settlements with all major groups of wildfire claimants and keeps PG&E on track to achieve regulatory approval and Bankruptcy Court confirmation in advance of the June 30 statutory deadline for participation in the state's new wildfire fund. "Today's filing brings us one step closer to successfully concluding PG&E's Chapter 11 cases so that the wildfire victims can be compensated as quickly as possible. We appreciate the extensive work by many stakeholders that went into this Plan, in particular the efforts of our state leaders to encourage all parties to work quickly to find common ground," said CEO and President of PG&E Corporation Bill Johnson. "We believe our plan is the best solution for all constituencies, and we look forward to bringing these complex proceedings to their conclusion. In the meantime, we continue to make meaningful changes and additional investments throughout the company to reduce the risk of wildfire and help us continue to deliver safe, reliable energy to our customers," Johnson said. PG&E reached a settlement valued at approximately $13.5 billion to resolve all remaining wildfire claims, including individual claims, relating to the 2015 Butte Fire, 2016 Ghost Ship Fire, 2017 Northern California Wildfires (including the 2017 Tubbs Fire), and the 2018 Camp Fire pursuant to the terms of PG&E's Plan. PG&E's Plan has the support of the Official Committee of Tort Claimants and firms representing approximately 70 percent of wildfire victims. PG&E previously reached settlements with two major groups of wildfire claim holders, including a $1 billion settlement with cities, counties, and other public entities, and an $11 billion agreement with insurance companies and other entities that have already paid insurance coverage for claims relating to the 2017 and 2018 wildfires. It also resolved the disputed release provisions between the wildfire victims and insurance companies, which was a condition to the settlement with the wildfire victims. Overview of PG&E's plan: • Satisfy the requirements of AB 1054 and put PG&E on a path to help the state meet its clean energy goals and become the company that customers and communities expect and deserve• Compensate wildfire victims and certain limited public entities from a trust funded for their benefit in the amount of approximately $13.5 billion in accordance with the terms of the Tort Claimants Restructuring Support Agreement, which is subject to the approval of the Bankruptcy Court and other conditions• Compensate insurance subrogation claimants from a trust funded for their benefit in the amount of $11 billion in accordance with the terms of the Subrogation Claims Settlement and Restructuring Support Agreement, which is subject to the approval of the Bankruptcy Court and other conditions• Pay $1 billion in full settlement of the claims of certain public entities like cities and counties relating to the wildfires, as previously announced• Pay in full, with interest at the legal rate, all prepetition funded debt obligations, all prepetition trade claims and all prepetition employee-related claims• Assume all power purchase agreements and community choice aggregation servicing agreements• Assume all pension obligations, other employee obligations, and collective bargaining agreements with labor• Provide for PG&E's future participation in the state wildfire fund established by Assembly Bill 1054.