While reporting its first-quarter financial results on Friday, PG&E Corp. (PCG) said it continues to make substantial progress in reorganization cases under Chapter 11 and remains on track for Bankruptcy Court confirmation of its Plan of Reorganization by June 30, 2020. The company noted this will allow it to participate in California’s new go-forward wildfire fund.
In addition, PG&E Corp. said it is not providing guidance for fiscal 2020 reported or core earnings. However, the company has provided factors affecting 2020 core earnings and guidance for non-core items.
These include a range of drivers causing a variance in earnings below authorized, including net below the line and spend above authorized of $150 million to $200 million after tax, and unrecovered interest expense of $100 million to $150 million after tax.
The company also provided 2020 non-core items guidance of about $2.1 billion to $2.3 billion after-tax for bankruptcy and legal costs, wildfire insurance fund contributions, investigation remedies and delayed cost recovery, and the 2011 GT&S capital audit.
PG&E noted it has previously reached settlements with all major groups of wildfire victims to be implemented pursuant to its plan, valued at about $25.5 billion at plan value. Voting by eligible parties is now underway, and ballot counting is expected to be complete by the third week of May, the company said.
In connection with the Chapter 11 proceedings and the CPUC’s regulatory process, PG&E Corp. and the Utility committed to a substantial change in the makeup of the Boards related to their emergence from Chapter 11.
PG&E Corp. has determined that three of its current Directors will continue to serve on the Boards after emerging from Chapter 11. They include Cheryl Campbell, William “Bill” Smith and John Woolard.
Additionally, Andrew Vesey will remain Utility CEO and a Director on the Utility Board. The remaining directors will step down from the boards in connection with the emergence of PG&E Corporation and the Utility from Chapter 11.
PG&E Corp. said it does not anticipate disruption to power supply and delivery due to COVID-19. The company has filed a notice with the CPUC that it is recording costs associated with COVID-19 in a memorandum account and may seek recovery at a future date.
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