Pacific Gas and Electric spent hours in federal court launching the final phase of its bankruptcy case.
It’s been 19 months since soaring power costs thrust California’s largest utility into debt and Chapter Eleven bankruptcy protection. P G and E says its financial future will be brighter the less authority the state has to oversee its assets and activities. But California power regulators don´t want to give up oversight to the feds.
P G and E attorney Steve Neal argued that the state’s vow to keep rates high enough to settle the utility’s debts won´t work because future members of the Public Utilities Commission might change their minds. PUC general counsel Gary Cohen says the commission would be true to its word.