4
OCC/CPUC Plan
The OCC/CPUC Plan provides stability, repays
creditors in full and allows PG&E to emerge from bankruptcy with
an investment grade credit profile
¨PG&E to be refinanced as an integrated
utility, the manner in which PG&E has operated for nearly a century
¨Plan capitalizes on current market
conditions which Fitch described recently:
¨$13.2 billion of claims reinstated or paid
in full with interest
¨Plan funded through a combination of cash on
hand and new debt and preferred
financing with a strong emphasis on secured financing
—$1.0 billion reinstated
claims and preferred equity interests
—at least $3.4 billion cash on
hand
—$8.8 billion new debt and
preferred securities
“ The outlook for the U.S. power and
gas industry has increasingly polarized between the stable outlook for
those regulated distributors and integrated utilities which do not have significant merchant energy activities,
including public power entities; and the negative outlook
for those companies that are major participants in wholesale,
merchant power and gas markets, or whose affiliates/parent have large
exposure ”