Pacific Gas & Electric filed for “Chapter 22” as California’s largest utility was again forced into Chapter 11 bankruptcy due to the state’s social justice regulatory structure.
Facing $300 million a month in unreimbursed power costs under California’s 1996 “deregulation” law that gave the state control of wholesale electric power purchases, Pacific Gas & Electric (PG&E) filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code in April 2001 in San Francisco court, listing $9 billion in debt.
The three-year reorganization cost the state between $40 and $45 billion and was directly responsible for the recall of California Democrat Gov. Gray Davis on October 7, 2003.
But following a Monday approval by the California Public Utility Commission (CPUC) to borrow $10 billion in “debtor in possession” financing, PG&E filed its second federal reorganization in the same San Francisco court and under the same Chapter 11 Bankruptcy Code listing $50 billion in assets and liabilities.
Read the full story from American Thinker
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