EDITORS: Please do not use "Pacific Gas and Electric" or "PG&E" when referring to PG&E Corporation or its National Energy Group. The PG&E National Energy Group is not the same company as Pacific Gas and Electric Company, the utility, and is not regulated by the California Public Utilities Commission. Customers of Pacific Gas and Electric Company do not have to buy products or services from the National Energy Group in order to continue to receive quality regulated services from Pacific Gas and Electric Company.

CHAPTER 11 UPDATE: PG&E RESPONDS TO ADVERSARY OBJECTIONS FILED BY CPUC, STATE AND OTHER ENTITIES

SAN FRANCISCO - In a filing with the U.S. Bankruptcy Court, Pacific Gas and Electric Company today responded to "adversary proceeding objections" filed by the California Public Utilities Commission (CPUC), the Attorney General of the State of California, and 12 other groups.

The utility continues to maintain separate adversary proceedings are not necessary because the issues raised by the parties will be addressed through the regular confirmation process. In a bankruptcy case, "contested matters" are the way in which motions are brought, and Bankruptcy Rule 9014 allows parties to voice their concerns through the plan disclosure and confirmation hearings.

In its filing, Pacific Gas and Electric Company noted the Attorney General and the CPUC did not comply with the Court's directive to identify the specific approvals that need to be obtained through an adversary proceeding and did not provide the legal arguments to support their contention. The Attorney General and the CPUC also did not observe the Court's request to indicate if they planned to assert a sovereign immunity defense against any such adversary proceedings they are requesting be initiated.

"The State and CPUC's coyness should be seen precisely for what it is: an attempt to obfuscate and delay the plan disclosure and confirmation process, to divert attention from the issue of whether the plan of reorganization is in the best interest of PG&E's creditors, ratepayers, and the State of California," the company said. "As a matter of law, no adversary proceedings are required, and the issues raised by the Attorney General, the CPUC, and other interested parties can be fully aired and resolved through the normal Bankruptcy Court process."