12
November 25th Ruling (continued)
¨Ruling also decided that the OCC
and CPUC had made a prima facie case for the financial feasibility of the
OCC/CPUC Plan
“ If the CPUC failed to establish
rates to cover the securities as called for in . . . the Reorganization Agreement, it would be in breach [of the Reorganization
Agreement]. If the CPUC departed from its historic practice for recovery of prudently
incurred costs, . . . it would be in breach [of the
Reorganization Agreement]. If the CPUC
failed to facilitate [PG&E] achieving and
maintaining investment grade ratings, it would be in breach [of the
Reorganization Agreement]. ”
“ I am satisfied that the Joint
Plan Proponents have carried their burden to establish a prima facie case of financial feasibility, even though there remains
several conditions the Joint Plan Proponents must
satisfy before the Plan can become effective. ”
“ [B]ased on evidence currently
before the Court. . .the conditions in the . . . UBS Warburg & Standard & Poor letters could be satisfied with more time
and after more information was received . . . .
[N]o evidence forecloses the Joint Plan Proponents from obtaining investment grade ratings for the
Plan. . . ”
Plan. . . ”