PG&E Has Now Reached Settlements with
All Major Groups of Wildfire Claimants
PG&E Achieves Fully-Funded Equity
Backstop Commitments
Company on Path to Making Major Changes
Necessary to Exit Bankruptcy Ahead of June 30, 2020,
Deadline
In the release dated December 06, 2019, "2015 Butte Fire" should
be included in first sentence, first paragraph (instead of in the
third sentence, first paragraph).
The corrected release reads:
IN FINAL MAJOR SETTLEMENT, PG&E REACHES
AGREEMENT TO RESOLVE INDIVIDUAL CLAIMS RELATING TO THE 2017 AND
2018 WILDFIRES AND THE 2015 BUTTE FIRE
PG&E Has Now Reached Settlements with
All Major Groups of Wildfire Claimants
PG&E Achieves Fully-Funded Equity
Backstop Commitments
Company on Path to Making Major Changes
Necessary to Exit Bankruptcy Ahead of June 30, 2020,
Deadline
PG&E Corporation and Pacific Gas and Electric Company
(together, “PG&E”) have agreed to a settlement with the
Official Committee of Tort Claimants (TCC) and with firms
representing individual claimants who sustained losses from the
2015 Butte Fire, 2017 Northern California Wildfires and 2018 Camp
Fire. The settlement agreement is valued at approximately $13.5
billion and has the support of the TCC. The settlement will resolve
all claims arising from those fires, including the 2017 Tubbs Fire
as well as all claims arising from the 2016 Ghost Ship Fire in
Oakland.
The settlement is subject to a number of conditions and is to be
implemented pursuant to PG&E’s Chapter 11 Plan of
Reorganization (the “Plan”), which is subject to confirmation by
the Bankruptcy Court in accordance with the provisions of the
Bankruptcy Code.
Bankruptcy Court approval of the settlement agreement would put
PG&E on a sustainable path forward to emerge from Chapter 11 by
the June 30, 2020, deadline to participate in the State of
California’s go-forward wildfire fund.
“From the beginning of the Chapter 11 process, getting wildfire
victims fairly compensated, especially the individuals, has been
our primary goal. We want to help our customers, our neighbors and
our friends in those impacted areas recover and rebuild after these
tragic wildfires,” said CEO and President of PG&E Corporation
Bill Johnson.
“We appreciate all the hard work by many stakeholders that went
into reaching this agreement. With this important milestone now
accomplished, we are focused on emerging from Chapter 11 as the
utility of the future that our customers and communities expect and
deserve.”
“There have been many calls for PG&E to change in recent
years. PG&E’s leadership team has heard those calls for change,
and we realize we need to do even more to be a different company
now and in the future. We will continue to make the needed changes
to re-earn the trust and respect of our customers, our stakeholders
and the public. We recognize we need to deliver safe and reliable
energy service every single day—we’re determined to do just
that.”
“Finally, we share the state’s focus on helping mitigate the
risk of future wildfires and we will continue to do everything we
can to help reduce those risks across our system,” concluded
Johnson.
Previous Settlements
This new agreement is the third major settlement that PG&E
has achieved in its Chapter 11 case. PG&E previously reached
settlements with two other 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.
PG&E’s Updated Plan of Reorganization
With all major wildfire claims now on a path to be resolved and
the total amount of wildfire liabilities determined, PG&E will
now amend and finalize its Plan, which will satisfy all wildfire
claims in accordance with Assembly Bill 1054 (AB 1054) and
otherwise comply with all requirements of the Bankruptcy Code. The
company remains on track to obtain regulatory approval and
Bankruptcy Court confirmation of its Plan in advance of the June
30, 2020, statutory deadline set by AB 1054 for participation in
the state’s go-forward wildfire fund.
In addition, PG&E has received over $12 billion of equity
backstop commitments to support the settlement and its Plan.
Public Dissemination of Certain Information
PG&E Corporation and Pacific Gas and Electric Company (the
“Utility”) routinely provide links to the Utility’s principal
regulatory proceedings with the California Public Utilities
Commission and the Federal Energy Regulatory Commission at
http://investor.pgecorp.com, under the “Regulatory Filings” tab, so
that such filings are available to investors upon filing with the
relevant agency. PG&E Corporation and the Utility also
routinely post, or provide direct links to, presentations,
documents, and other information that may be of interest to
investors at http://investor.pgecorp.com, under the “Chapter 11,”
“Wildfire Updates” and “News & Events: Events &
Presentations” tabs, respectively, in order to publicly disseminate
such information. It is possible that any of these filings or
information included therein could be deemed to be material
information.
About PG&E Corporation
PG&E Corporation (NYSE: PCG) is a holding company
headquartered in San Francisco. It is the parent company of Pacific
Gas and Electric Company, an energy company that serves 16 million
Californians across a 70,000-square-mile service area in Northern
and Central California. Each of PG&E Corporation and the
Utility is a separate entity, with distinct creditors and
claimants, and is subject to separate laws, rules and regulations.
For more information, visit http://www.pgecorp.com.
Forward-Looking Statements
This press release contains forward-looking statements that are
not historical facts, including statements about the beliefs,
expectations, estimates, future plans and strategies of PG&E
Corporation and the Utility, including but not limited to their
bankruptcy emergence plan and related financings. These statements
are based on current expectations and assumptions, which management
believes are reasonable, and on information currently available to
management, but are necessarily subject to various risks and
uncertainties, including the possibility that the conditions to
emergence in the Plan or to funding under equity financing
commitments will not be satisfied. In addition to the risk that
these assumptions prove to be inaccurate, factors that could cause
actual results to differ materially from those contemplated by the
forward-looking statements include factors disclosed in PG&E
Corporation and the Utility’s joint Annual Report on Form 10-K for
the year ended December 31, 2018, their joint Quarterly Reports on
Form 10-Q for the quarters ended March 31, 2019, June 30, 2019 and
September 30, 2019, and their subsequent reports filed with the
Securities and Exchange Commission. Additional factors include, but
are not limited to, those associated with the Chapter 11 cases of
PG&E Corporation and the Utility that commenced on January 29,
2019. PG&E Corporation and the Utility undertake no obligation
to publicly update or revise any forward-looking statements,
whether due to new information, future events or otherwise, except
to the extent required by law.
No Securities Offering
This is not an offering of securities and securities may not be
offered or sold absent registration or an applicable exemption from
the registration requirements.
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