FERC’S RESPONSE TO LEAD CASE NO. 19-30088 

PG&E’S MOT. TO LIFT STAY 

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U.S. Department of Justice P.O. Box 875 Washington, DC 20044-0875 

U.S. DEPARTMENT OF JUSTICE 

Joseph H. Hunt, Assistant Attorney General 

Civil Division 

Ruth A. Harvey, Director 

Kirk Manhardt, Deputy Director 

Matthew Troy (GA Bar No. 717258) 

Marc S. Sacks (GA Bar No. 621931) 

Danielle A. Pham (CA Bar No. 269915) 

Shane Huang (IL Bar No. 6317316) 

Trial Attorneys 

P.O. Box 875, Ben Franklin Station 

Washington, D.C. 20044-0875 

Telephone: (202) 514-7451 

Email: marcus.s.sacks@usdoj.gov 

 danielle.pham@usdoj.gov 

 shane.huang@usdoj.gov 

David L. Anderson (CA Bar No. 149604) 

United States Attorney 

Northern District of California 

Attorneys for the Federal Energy Regulatory Commission 

UNITED STATES BANKRUPTCY COURT 

FOR THE NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

In re: 

PG&E CORPORATION 

-andPACIFIC GAS & ELECTRIC COMPANY, 

Debtors, 

☐Affects PG&E Corporation 

☒Affects Pacific Gas and Electric Company 

☐Affects both Debtors 

* All papers shall be filed in the Lead Case, 

No. 19-30088 (DM). 

Case No.: 19-30088-DM 

Chapter 11 

(Lead Case) 

(Jointly Administered) 

RESPONSE OF THE FEDERAL 

ENERGY REGULATORY 

COMMISSION TO MOTION OF THE 

UTILITY FOR LIMITED RELIEF FROM 

THE AUTOMATIC STAY TO APPEAL 

CERTAIN MATTERS PENDING 

BEFORE THE FEDERAL ENERGY 

REGULATORY COMMISSION 

[Relates to Dkt. 2359] 

 Date: June 26, 2019 

Time: 9:30 a.m. 

Place: Courtroom 17 

 450 Golden Gate Avenue 

 16th Floor 

 San Francisco, California 

Judge: Hon. Dennis Montali 

Case: 19-30088 Doc# 2610 Filed: 06/19/19 Entered: 06/19/19 10:52:17 Page 1 of

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FERC’S RESPONSE TO LEAD CASE NO. 19-30088 

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U.S. Department of Justice P.O. Box 875 Washington, DC 20044-0875 

INTRODUCTION 

The Federal Energy Regulatory Commission (“FERC” or the “Commission”) hereby 

responds to PG&E Corporation’s (“PG&E Corp.”) and Pacific Gas and Electric Company’s (the 

“Utility,” and with PG&E Corp., the “Debtors”) Motion of the Utility for Limited Relief from the 

Automatic Stay to Appeal Certain Matters Pending Before the Federal Energy Regulatory 

Commission (the “Motion”). FERC objects to the Motion on a limited basis because the proposed 

order is broader than the relief sought in the Motion.1

 

BACKGROUND 

On January 29, 2019, the Debtors each commenced voluntary cases under chapter 11 of 

title 11 of the United States Code (the “Bankruptcy Code”) in this Court. Contemporaneously, the 

Debtors commenced an adversary proceeding against FERC, Adv. Case No. 19-03003-DM. 

In the adversary proceeding, the Debtors filed a motion seeking a preliminary injunction 

against FERC [Adv. Docket No. 2] (the “PI Motion”). One issue raised in the PI Motion is whether 

the automatic stay applies to the FERC Proceedings. See PI Motion, Adv. Case No. 19-03003-

DM, Docket No. 2, 12-16. After briefing and argument, the court entered a judgment and 

memorandum decision in the adversary proceeding, but did not decide the issue of whether the 

automatic stay applied to the FERC Proceedings. See Mem. Decision, Adv. Case No. 19-03003-

DM, Docket No. 153. 

The Debtors’ Motion seeks prospective and retroactive relief from the automatic stay, to 

the extent it is or was applicable to the FERC Proceedings, for the purpose of preserving the 

Debtors’ appellate rights in the FERC Proceedings. Mot. at 2. While the Motion does not seek a 

determination of whether the automatic stay applies to the FERC Proceedings, the proposed order 

is ambiguous and could be interpreted, if entered, as improperly adjudicating that the automatic 

 

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 The United States is negotiating with interested parties regarding the proposed order, and files 

this objection to preserve its rights in case a consensual resolution cannot be reached. 

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FERC’S RESPONSE TO LEAD CASE NO. 19-30088 

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U.S. Department of Justice P.O. Box 875 Washington, DC 20044-0875 

stay applies to the FERC Proceedings. See Proposed Order, ¶1. As demonstrated below, FERC 

has established that the FERC proceedings are excepted from the automatic stay. 

DISCUSSION 

As FERC has previously briefed in the adversary proceeding, the FERC Proceedings are 

excepted from the automatic stay under section 362(b)(4), and the court has not issued a decision 

with respect to this issue. See FERC Opp. to PI Motion, Adv. Case No. 19-03003-DM, Docket 

No. 87, at 20-21; Mem. Decision, Docket No. 153, at 17-18. See also 11 U.S.C. § 362(b)(4) 

(“action or proceeding by a governmental unit . . . to enforce such governmental unit’s . . . 

regulatory power” is excepted from the automatic stay.”) FERC previously demonstrated that the 

FERC Proceedings satisfy both the Ninth Circuit’s “pecuniary purpose test” and the “public policy 

test” and thus, are excepted from the automatic stay. See FERC Opp. to PI Motion, Adv. Case No. 

19-03003-DM, Docket No. 87, at 20-21. 

However, it is not necessary for the Court to determine whether the automatic stay applies 

to the FERC Proceedings in order to grant the relief requested in the Motion. Here, the Debtors 

recognize that “it is unclear to the Utility that the automatic stay would preclude filing an appeal.” 

Mot. at 5. As such, the Debtors only seek relief from the automatic stay “to the extent it is or was 

applicable.” Mot. at 2. Thus, the Court does not need to enter an order that would adjudicate the 

application of the automatic stay. 

Despite seeking limited relief in their Motion, the Debtors’ proposed order could be 

interpreted, if entered, as the Court concluding that the automatic stay applies to the FERC 

Proceedings. See Proposed Order, ¶1. Thus, FERC requests that to the extent the Court grants the 

relief requested in the Motion, the order be revised so that it is limited to the relief requested in the 

Motion and avoids adjudicating the issue of whether the automatic stay applies to the FERC 

Proceedings by revising Paragraph 1 of the proposed order: 

The Motion is granted as provided herein. To the extent the automatic stay applies, 

the Court grants (a) prospective relief from the automatic stay to permit the Utility 

to file and prosecute to conclusion an appeal of the FERC Orders, and (b) 

retroactive relief from the automatic stay, to the extent necessary, to avoid the 

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FERC’S RESPONSE TO LEAD CASE NO. 19-30088 

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U.S. Department of Justice P.O. Box 875 Washington, DC 20044-0875 

invalidation based on the automatic stay of the Utility’s Requests for Rehearing, or 

the FERC Orders, or of post-petition actions by the Utility or FERC relating to the 

FERC Orders. 

CONCLUSION 

For the foregoing reasons, to the extent the Court grants the Motion, FERC requests that 

the proposed order be revised to make clear that relief from stay is granted only to the extent the 

automatic stay applies. 

Dated: June 19, 2019 Respectfully submitted, 

JOSEPH H. HUNT 

Assistant Attorney General 

RUTH A. HARVEY 

Director 

KIRK MANHARDT 

Deputy Director 

DAVID L. ANDERSON 

United States Attorney 

Northern District of California 

/s Danielle A. Pham 

MATTHEW TROY (GA Bar No. 717258) 

MARC S. SACKS (GA Bar No. 621931) 

DANIELLE A. PHAM (CA Bar No. 269915) 

SHANE HUANG (IL Bar No. 7316316) 

Trial Attorneys 

U.S. Department of Justice, Civil Division 

P.O. Box 875, Ben Franklin Station 

Washington, D.C. 20044-0875 

Telephone: (202) 514-7451 

Facsimile: (202) 514-9163 

E-mail: danielle.pham@usdoj.gov 

ATTORNEYS FOR THE FEDERAL 

ENERGY REGULATORY COMMISSION 

Case: 19-30088 Doc# 2610 Filed: 06/19/19 Entered: 06/19/19 10:52:17 Page 4 of

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