The bankruptcy court presiding over PG&E Corp.’s chapter 11 case denied California ratepayers’ attempt to gain a seat at the negotiating table as an official committee, WSJ Pro Bankruptcy reported. In papers filed on Tuesday, Judge Dennis Montali ruled that ratepayers aren’t creditors and don’t need separate representation apart from the official committee of unsecured creditors or the official committee of tort claimants. At a hearing earlier in May, Cecily Dumas, the lead lawyer for the official committee of wildfire victims, told Judge Montali that customers fear PG&E’s bankruptcy will end in higher rates for electricity. Official committee status would entitle ratepayers to hire professionals and to send the bill to PG&E. In addition to its own lawyers and advisers, PG&E in bankruptcy is required to pay for lawyers and advisers for other official committees. PG&E damages from wildfires last year could prove to be higher than $30 billion, the fire victims have said in court papers. With more than $24 billion owed to bondholders, lenders and other creditors, PG&E might have to raise rates if it wants to emerge from chapter 11 with all its debts paid.
