PG&E Corp. Moves to Dismiss Attorney General's Lawsuit

Harts Energy Markets ^ | Feb. 15 -02 | PRNewswire-FirstCall

[lewislynn]

PG&E Corp. Moves to Dismiss Attorney General's Lawsuit

    SAN FRANCISCO, Feb. 15 /PRNewswire-FirstCall/ -- PG&E Corporation
(NYSE: PCG) today filed a motion in the Northern District U.S. Bankruptcy
Court to dismiss a lawsuit filed against the Corporation by the California
Attorney General.  The Corporation said the attorney general's complaint
illegally interferes with the court's supervision of Pacific Gas and Electric
Company's plan of reorganization process and illegally seeks to punish PG&E
Corporation for co-sponsoring the plan of reorganization.
    The attorney general's complaint alleges that PG&E Corporation and its
directors made improper use of the Bankruptcy Court by virtue of PG&E
Corporation's co-sponsoring of the pending Plan of Reorganization. It also
seeks restitution of assets allegedly wrongfully transferred to PG&E
Corporation from Pacific Gas and Electric Company.
    The financial transactions cited by the attorney general have been
thoroughly reviewed and audited multiple times - by the California Public
Utilities Commission, and by the state Legislature - with no findings that the
transactions were anything but entirely appropriate and legal.
    The company said it believes the attorney general's complaint is without
merit, and is part of his ongoing efforts to obstruct Pacific Gas and Electric
Company's plans for emerging from bankruptcy.

[Fish out of Water]

bti