STATE OF CALIFORNIA GRAY DAVIS, Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
September 9, 2003
TO: ALL PARTIES OF RECORD IN INVESTIGATION 02-07-015
Commissioner Lynch and Commissioner Wood have reserved the right to file concurrences. Decision 03-09-020 is being mailed without their Concurring Opinions. The Concurring Opinions will be mailed separately.
Very truly yours,
/s/ ANGELA K.MINKIN
Angela K. Minkin, Chief
Administrative Law Judge
ANG:tcg
Attachment
ALJ/DUG/tcg Mailed 9/9/2003
Decision 03-09-020 September 4, 2003
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Investigation of Pacific Gas and Electric Company (U 39 M) to (1) Issue, Sell and Deliver Common Stock and One or More Series of Its First and Refunding Mortgage Bonds, Debentures, Subordinated Deferrable Interest Debentures, Promissory Notes and/or Other Evidences of Indebtedness in Connection with A Confirmed Plan of Reorganization Under Chapter 11 of the Bankruptcy Code, the Total Aggregate Principal Amount of Such Issuances and Guarantees Not to Exceed $9.5 Billion; (2) Enter into One or More Interest Rate Caps, Collars and Swaps; (3) an Exemption from the Competitive Bidding Rule. |
Investigation 02-07-015 (Filed July 17, 2002) |
DECISION GRANTING MODIFICATIONS TO FINANCE AUTHORITY RELATED TO PACIFIC GAS AND ELECTRIC COMPANY'S
PENDING BANKRUPTCY REORGANIZATION
Title Page
DECISION GRANTING MODIFICATIONS TO FINANCE AUTHORITY RELATED TO PACIFIC GAS AND ELECTRIC COMPANY'S PENDING BANKRUPTCY REORGANIZATION...................................................... 2
I. Summary 2
II. Background 2
III. Specific Authorization Sought In the Petition 5
A. Proposed Hedging Instruments 6
B. Proposed Ratemaking Treatment 7
C. Decision Process to Enter Into Interest Rate Hedges 10
D. Exempting Hedges From Competitive Bidding 12
E. Specific Modifications to D.02-11-030 13
IV. Parties' Responses to the Petition 13
A. Comments in Support 14
1. The Utility Reform Network 14
2. Office of Ratepayer Advocates 15
B. Comments in Opposition 16
C. Motion for Leave to File Reply Comments 18
V. Reduction of Time for Public Review and Comment 18
VI. Assignment of Proceeding 20
Findings of Fact 20
Conclusions of Law 21
ORDER 23
Appendix A - Modifications to D.02-11-030
DECISION GRANTING MODIFICATIONS TO FINANCE AUTHORITY RELATED TO PACIFIC GAS AND ELECTRIC COMPANY'S
PENDING BANKRUPTCY REORGANIZATION
I. Summary
This decision grants with modifications Pacific Gas and Electric Company's (PG&E) July 25, 2003 Petition to Modify Decision (D.) 02-11-030 for authority to enter into interest rate hedges to mitigate costs of financing PG&E's emergence from bankruptcy. PG&E may enter into interest rate swaps as defined in the Petition and this decision, but only with the concurrence of the duly authorized Commission's bankruptcy Financing Team.
