Message-ID: <13663208.1075845028456.JavaMail.evans@thyme>
Date: Sun, 20 May 2001 04:12:00 -0700 (PDT)
From: lisa.mellencamp@enron.com
To: richard.sanders@enron.com, mark.haedicke@enron.com, james.derrick@enron.com, 
	vicki.sharp@enron.com
Subject: Judge's Ruling against Ratepayers Committee
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Lisa J. Mellencamp
Enron North America Corp. - Legal
1400 Smith St.
Houston, TX  77002
Tel:  (713) 853-7986
Fax: (713) 646-3393
E-mail:  Lisa.Mellencamp@enron.com
----- Forwarded by Lisa Mellencamp/HOU/ECT on 05/20/2001 11:11 AM -----

	AMarks@milbank.com
	05/18/2001 06:54 PM
		 
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		 Subject: Judge's Ruling against Ratepayers Committee




There will be no Official Committee of Ratepayers in the PG&E bankruptcy 
case.? Judge Montali issued his order today granting PG&E's motion (in which 
our Creditors Committee joined), vacating the appointment of the Ratepayers 
Committee.? 

The Judge ruled that the Bankruptcy Code does not grant the ratepayers 
standing as they are not creditors of PG&E, and that there is no statutory 
authority on which an official ratepayers' committee could be based.? The 
State Attorney General is capable of addressing consumers' interests in the 
bankruptcy case.? Individual ratepayers are always free to seek to intervene 
later on particular issues in which they have an interest.? The Judge made 
clear that "having an interest in a result (as all ratepayers do) does not 
rise to the level of having a claim as defined by the Bankruptcy Code."? He 
noted that "the Bankruptcy Code, and the bankruptcy court, were designed to 
resolve debtor-creditor problems; state agencies are where issues such as 
rates for electricity are handled....[T]he estate...should not be burdened 
with matters likely to be resolved elsewhere."? The ratepayers can take their 
issues to the CPUC or another forum where regulatory issues are heard.

Please call us should you have any questions. 

Regards, 

Allan 
______________________________ 
Allan T. Marks 
Milbank, Tweed, Hadley & McCloy LLP 
email:? amarks@milbank.com 
website:? www.milbank.com? 
(213) 892-4376 (L.A. telephone) 
(212) 530-5312 (N.Y. telephone) 
(213) 892-4739 (L.A. direct fax) 
(213) 629-5063 (L.A. main fax)????????????????  

 <<...>> 

? <<RatepayersCommMem5-18.pdf>> 

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 - RatepayersCommMem5-18.pdf