Business

Lenders push $30 billion, rebrand for PG&E

Pacific Gas & Electric’s major lenders proposed a $30 billion infusion of capital to aid the waylaid utility following major claims related to two years worth of wildfires caused by its equipment.

In a filing in U.S. Bankruptcy Court, the utility’s major lenders would commit $18 billion of the total loan toward the wildfire claims accumulated in 2017 and 2018.

The move was first reported by The Sacramento Bee.

Bondholders in the utility, which include major institutional investors including Apollo Global Management, Elliott Management, and PIMCO, also proposed a new name for the company: the Golden State Power Light & Gas Company.

In a statement issued after the filing, PG&E said “we are looking at all options when it comes to working with the Governor and all stakeholders” as it navigates bankruptcy proceedings.

The exit plan proposed by PG&E lenders ordinarily would not be the first unveiled. Bondholders argued in their filing that they submitted their plan because the utility “wasted crucial time needlessly.”

Late last week. Gov. Gavin Newsom proposed a $24 billion package that cobbled rate increases and utility contributions to handle future wildfire costs and adjust state laws to ensure that utilities can recover disaster-related costs from ratepayers.

The San Joaquin Valley Sun
Staff reports from The San Joaquin Valley Sun staff.