SAN FRANCISCO - PG&E Corporation (NYSE: PCG)
and Pacific Gas and Electric Company today issued
the following statement in response to the decision
issued by the Ninth Circuit Court of Appeals on the
issue of express preemption:
"We do not view today's ruling by the three-judge
panel as having an impact on our plan to emerge from
Chapter 11. The proposed settlement agreement reached
with the staff of the California Public Utilities
Commission (CPUC) in June is proceeding towards resolution
by the end of this year and does not rely on the bankruptcy
law preemption issues addressed in today's Ninth Circuit
decision."
"The Court's ruling today, which relates to PG&E's
original plan, authorizes the application of express
preemption of otherwise applicable nonbankruptcy laws
relating to financial conditions in a plan of reorganization.
In addition, the Ninth Circuit reaffirmed that implied
preemption could apply in a case even if express preemption
did not."