(New York, NY) - In remarks today at the Lehman
Brothers Energy/Power Conference, Robert D. Glynn,
Jr., Chairman, CEO and President of PG&E Corporation
(NYSE: PCG) said the company is "on a clear path
to stability and increased financial performance.";
Glynn discussed the recent proposed settlement agreement
to resolve Pacific Gas and Electric Company's Chapter
11 case, outlining specific elements of the proposed
settlement that would strengthen the utility's
financial health and help provide for a more stable
regulatory environment. These elements include investment-grade
credit ratings for Pacific Gas and Electric Company,
a minimum authorized return on equity of 11.22 percent,
and the establishment of a $2.21 billion after-tax "regulatory
asset," which would be included in the utility's
rate base. Glynn also cited specific steps underway
at the California Public Utilities Commission
to address power procurement and cost recovery
issues.
Glynn said the company believes that implementing
the proposed settlement agreement will deliver strong
financial performance, and he restated the company's
aspiration to pay dividends in the latter part of
2005.
"The proposed settlement agreement and a new
plan of reorganization are proceeding on schedule
through approval processes at the California Public
Utilities Commission and in the bankruptcy court," said
Glynn. "We believe
the agreement is on track to achieve the first quarter
2004 target for the utility's exit from Chapter 11."
A webcast
replay of Glynn's presentation is available on the
PG&E Corporation web site, www.pgecorp.com.
The statements in this release and in Mr. Glynn's presentation
regarding management's beliefs and expectations for
increased financial performance, shareholder value and
future dividends are forward-looking statements that
are subject to a number of risks and uncertainties.
Actual results could differ materially depending on
many factors, including whether the proposed settlement
agreement is approved by the CPUC, whether the proposed
settlement plan is timely implemented, the outcome of
various regulatory proceedings, and other factors discussed
in PG&E Corporation's reports filed with the Securities
and Exchange Commission.