Public Utilities Code Section 311
Section § 311(g)(1) requires the Commission's draft decision regarding PG&E's Petition to be (i) served on all parties, and (ii) subject to at least 30 days of public review and comment prior to a vote of the Commission. Section 311(g)(2) allows the 30-day period to be reduced or waived upon the stipulation of all parties. PG&E, the only party that participated in this proceeding with respect to its Petition, asks the Commission to use its authority under § 311(g)(2) to reduce the 30-day period for public review and comment to 5 business days from the date of e-mail transmission of the draft decision.
The draft decision of ALJ Kenney was mailed and e-mailed on ____________. Comments on the draft decision were filed on __________ by _____________. These comments have been incorporated, as appropriate, in the final decision adopted by the Commission.
1. D.01-01-062 granted PG&E authority under § 851 to pledge its accounts receivable and core inventory for the sole purpose of procuring core gas supplies. The authority terminated 90 days after the effective date of D.01-01-062, or, if earlier, 15 days after an upgrade of the credit rating of PG&E's senior unsecured long-term debt to BBB- by S&P or Baa3 by Moody's.
2. D.01-02-050 extended PG&E's authority to pledge its accounts receivable and core inventory until the earlier of (i) July 31, 2001, or (ii) 15 days after an upgrade of the credit rating of PG&E's senior unsecured long-term debt.
3. In its Petition, PG&E seeks to extend its authority to pledge its accounts receivable and core inventory until the effective date of a confirmed reorganization plan in PG&E's bankruptcy case or the closure or dismissal of PG&E's bankruptcy case. PG&E does not seek to change the provision in D.01-01-062 and D.01-02-050 that ends PG&E's authority to pledge its accounts receivable and core inventory 15 days after an upgrade of PG&E's credit rating.
4. PG&E represents that its requested modification of D.01-01-062 and D.01-02-050 is needed to enable PG&E to obtain sufficient supplies of gas to meet the current and future needs of its core customers.
5. PG&E represents that as long as it is in bankruptcy, many gas suppliers will not sell gas to PG&E without a security interest in PG&E's gas accounts receivables and core inventory.
1. It is in the public interest to modify D.01-01-062 and D.01-02-050 to extend PG&E's authority under § 851 to pledge its gas customer accounts receivable and core gas inventory for the sole purpose of procuring gas supplies to meet the current and future needs of its core customers.
2. Given the precarious nature of PG&E's finances and the California energy crisis, it is in the public interest to periodically reconsider PG&E's need for authority to pledge its gas accounts receivable and core inventory.
3. D.01-01-062 and D.01-02-050 should be modified to extend PG&E's authority to pledge its accounts receivable and core inventory until the earlier of (i) April 1, 2002, (ii) the effective date of a confirmed reorganization plan in PG&E's bankruptcy case, (iii) the closure or dismissal of PG&E's bankruptcy case, or (iv) 15 days after an upgrade of the credit rating of PG&E's senior unsecured long-term debt to BBB- by S&P or Baa3 by Moody's.
4. The following order should be effective immediately to help ensure PG&E's ability to procure sufficient supplies of gas to meet the current and future needs of its core customers.
IT IS ORDERED that:
1. Pursuant to Pub. Util. Code § 851, Pacific Gas and Electric Company (PG&E) is authorized to pledge its gas customer accounts receivable and core gas inventory, subject to PG&E's Mortgage, for the sole purpose of procuring gas for PG&E's core customers, including flowing gas supplies and storage gas.
2. The authority granted to PG&E in Ordering Paragraph 1 shall terminate the earlier of (i) April 1, 2002, (ii) the effective date of a confirmed reorganization plan in PG&E's bankruptcy case, (iii) the closure or dismissal of PG&E's bankruptcy case, or (iv) 15 days after an upgrade of the credit rating of PG&E's senior unsecured long-term debt to BBB- by Standard & Poor's or Baa3 by Moody's Investor Services.
3. PG&E's petition to modify Decision (D.) 00-01-062 and D.01-02-050, filed on June 1, 2001, is granted and denied to the extent set forth in the previous Ordering Paragraphs. In all other respects, D.01-01-062 and D.01-02-050 remain in full force and effect.
This order is effective today.
Dated , at San Francisco, California.
