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November 25th Ruling

¨Ruling decided, among other matters, that as a matter of law, the Reorganization Agreement is binding and enforceable

In a decision on November 25th, 2002, Judge Montali ruled that the Reorganization Agreement is a legally enforceable and binding commitment

“ The CPUC has the power to enter into contracts and to subject itself to federal jurisdiction, including a waiver of sovereign immunity. Thus its voluntary sponsorship of the plan and its voluntary entry into the reorganization agreement binds it and subjects it to this Court’s jurisdiction. ”

“ I conclude that future commissions would be bound as a matter of California law pursuant to . . . the Reorganization Agreement and as a matter of federal law . . . . ”

“ The CPUC has the power to enter into the Reorganization Agreement with the OCC and to propose the plan which has that agreement as its centerpiece for implementation. . . . ”