This excerpt taken from the PCG 8-K filed Oct 28, 2005.
Pacific Gas and Electric Company Chapter 11 Filing
The petitions for review of the CPUCs orders approving the Settlement Agreement that were filed by the City and County of San Francisco, or CCSF, and Aglet Consumer Alliance, or Aglet, remain pending at the California Court of Appeal. Three California state senators have filed a brief in support of the CCSF and Aglet petitions. The California Court of Appeal has not yet acted on the petitions.
In addition, two former CPUC commissioners who did not vote to approve the Settlement Agreement filed an appeal of the bankruptcy courts confirmation order with the U.S. District Court for the Northern District of California, or the District Court. On July 15, 2004, the District Court dismissed their appeal. The former commissioners have appealed the District Courts order with the U.S. Court of Appeals for the Ninth Circuit, or Ninth Circuit. After briefing is complete, the Ninth Circuit will consider arguments by the Utility and the CPUC to dismiss the appeal. On April 12, 2005, the District Court entered an order dismissing a second appeal of the confirmation order that had been filed by the City of Palo Alto, but which the City of Palo Alto subsequently had agreed to dismiss voluntarily.
If the bankruptcy courts confirmation order or the Settlement Agreement is overturned or modified on appeal, PG&E Corporations and the Utilitys financial condition and results of operations, and the Utilitys ability to pay dividends or otherwise make distributions to PG&E Corporation, could be materially adversely affected.
The Utilitys Chapter 11 proceeding has been previously disclosed in PG&E Corporations and the Utilitys combined 2004 Annual Report on Form 10-K in Part I, Item 3: Legal Proceedings. For additional information, see Note 2 of the Notes to the Condensed Consolidated Financial Statements.