SACRAMENTO – The American Wind Energy Association of California (AWEA-California) released the following statement from Director Danielle Osborn Mills regarding PG&E commitments. This was following PG&E’s commitment on September 9￼ submittal of its reorganization plan to the bankruptcy court:
“We’re encouraged by PG&E’s commitment to honor all contracts with renewable energy producers in the utility’s Plan of Reorganization. The State of California is a national leader for clean energy thanks in large part to early investments that allowed wind energy and other renewable technologies to grow and innovate. Looking ahead, achieving the state’s bold climate policies will not be possible without reliable, low-cost renewable energy providers’ continued confidence that their contracts will be honored.” – Danielle Osborn Mills, AWEA-California.
In PG&E’s statement announcing its reorganization plan, the utility states that ‘all power purchase agreements. Especially renewable energy power purchase agreements, and Community Choice Aggregation servicing agreements. All “shall be deemed assumed.’
Renewable energy has been the cornerstone of the state’s climate progress. Most noteworthy over the last decade. So wind energy companies will continue to invest in new, sustainable energy solutions for Californians. Utility-scale wind and solar projects are the least expensive sources of new electricity generation. That’s consequently in many parts of the country. So these energy sources will finally be the key to meeting California’s climate goals. All the while keeping costs low for consumers.
To be clear and according to Barron’s: Two factions have formed in the proceedings. Also, each group has introduced a plan to steer the California utility out of bankruptcy.
Therefore and on one side is PG&E (ticker: PCG) and its shareholders. They are along with wildfire insurance claimants. That’s a group that includes insurers and hedge funds. On the other is PG&E’s bondholders and wildfire victims.
Moreover, the latter group didn’t announce itself until late last week. They are consortium of bondholders and wildfire victims; seeking permission to introduce a reorganization plan. A plan to compete with PG&E commitments. The judge overseeing the bankruptcy proceedings is holding a hearing on that request on Oct. 8, court filings show. As well as a status conference on Jan. 24.
Bondholders and wildfire victims included a restructuring plan in their initial filing. So they provided more detail in investor commitment letters filed on Monday. Their proposal provides far worse terms for shareholders than the plan PG&E (and its shareholders) filed on Sept. 9.
To review: PG&E’s commitments and plan would raise $14 billion with some form of equity issuance, and $7 billion from new debt. The equity could be issued through a rights offering in some circumstances. As a result, would limit the dilution of existing shareholders’ current stakes. But the utility also reserves the right to sell shares through methods such as at-the-market offerings and used by some companies in the past. Problem is this plan isn’t seen as especially friendly to shareholders.