SAN FRANCISCO - Pacific
Gas and Electric Company today issued the following statement in
response to the filing made in U.S. Bankruptcy Court by the California
Public Utilities Commission (CPUC). On January 16, the Court ordered
the CPUC to submit no later than today a term sheet outlining its
alternative proposal for the utility to emerge from bankruptcy:
"The Court asked the CPUC
to prepare a credible term sheet. The proposal outlined today is
not credible and will not work. It will not work because it overstates
the available cash, understates the debt and undermines the utility's
ability to invest in electric system reliability. Most striking
is the fact that the CPUC continues to misunderstand the meaning
of creditworthiness. The CPUC's term sheet will not restore PG&E
to creditworthy status and thus condemns the state to remain in
the power business."