PG And E’s Exemption Request Denied
A federal bankruptcy judge has rejected Pacific Gas and Electric´s request for an exemption from California laws and regulations as it tries to get out of bankruptcy.
US Bankruptcy Judge Dennis Montali says federal bankruptcy code does not allow PG and E´s reorganization plan to override dozens of state laws and regulations.
The utility is attempting to move more than eight billion dollars in assets beyond the reach of state regulators.
But Montali says he´ll allow the plan to move forward if PG and E convinces him that being freed from state oversight is the only way to return to creditworthiness. PG and E says it will do that.
The utility´s parent company made a motion yesterday to transfer a lawsuit filed by state Attorney General Bill Lockyer from San Francisco Superior Court to the federal bankruptcy court. Lockyer will challenge that move.