Pacific Gas & Electric Clears Way For California's Plan to Sell Bonds

SACRAMENTO, Calif. -- Pacific Gas & Electric Co. has removed a major obstacle from California's plan to sell up to $11.1 billion in electric-revenue bonds, saying it does not intend to challenge key elements of the sale in the state Supreme Court.

Thank you very much for this article as it updates quite a few things. I guess that the PUC has put in a repayment plan that passes muster, if it is not challenged within the next month. So that Means that a degree of bond repayment certainty may be possible in May, even though a PG&E reorganization plan will not be finalized until June. May to the end of June would be a very tight time line to issue a major bond issue, but the State might start the process in April in anticipation of more certainty in May.

If so this is going to require a heroic effort on the part of a lot of state officials during the start of an election year election season.

Dan Aschenbach, a senior vice president of Moody's Investors Service, went further, calling the letter "a huge step forward by PG&E to move ahead with this bond issue." At the same time though, Mr. Aschenbach added, "From a credit perspective, we still have serious reservations about the regulatory uncertainty in California and how that will affect future decisions on rates."

Yes, it should be interesting to watch the process and heroic efforts on California's part to issue power bonds. Thank you again for sharing this article which bring me up to speed on this and the PUC aspects of what is happening.

Missed this one too!

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Were the writers of this article, west coast and Kali dumbed down reporters?

The article was more like a SF Gayrhonicle of SJ Jercury dry cleaned article to make Davis and the rats look good than your typical WSJ article.

Having said that. Post the Monica licking fiasco, I let my subscription to the WSJ expire and didn't renew it because of the hate opeds of Al Hunt and some other leftist reporting during this time. I told the editors/publishers if I wanted left wing hate mantras/publicity, I would buy a NY or LA Slimes or the Gay Rhonicle.

I got back some garbage about fair balance. I replied that Al Hunt was never fair balance. He was a leftist hate monger, and I would not subscribe to a newspaper that paid him to write his articles of leftist hate. I never heard from them, but I continue to get great offers if I re subscribe.

One thing that's going on here that the article didn't mention: Davis directed his minions to make PG&E the scapegoat for the budget crisis. He has (or at least had) the unions set to take out ads vilifying PG&E for obstructing the bond sale and thus 'causing' the budget to be out of balance. At least part of the reason for PG&E's issuance of this letter is to innoculate itself against this strategy. Davis will fight as dirty as it takes to save his sorry butt.

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