In a press release Sunday, PG&E Corporation and Pacific Gas and Electric Company announced it has completed the initial stage of its bankruptcy exit financing contemplated in its Plan of Reorganization.
According to a PG&E spokesperson, as a result of its Chapter 11 proceedings, PG&E has been able to retire expensive high-coupon debt and replace it with lower cost debt, generating savings for customers estimated to be $250 million annually. The company will reflect these savings in future customer bills later this year.
“The primary purpose of our Chapter 11 filings was to address the billions of dollars in claims from victims of recent wildfires. We’ve been able to reach agreements with individual victims, public entities and others. This financing effort takes us one step closer to compensating victims for their losses” said Jason Wells, Chief Financial Officer of PG&E.