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UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF CALIFORNIA

In re: 

PG&E CORPORATION,

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PACIFIC GAS AND 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).

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Bankruptcy Case

No. 19-30088-DM

Chapter 11

Jointly Administered

ORDER APPOINTING MEDIATOR

In March, 2003, in the first PG&E bankruptcy (by the 

Utility only), the court ordered mediation. In its order it 

made the following observation:

The court has considered those requests and has 

reflected on the history of this case (which 

reaches its second anniversary on April 6th), the 

staggering expense to be incurred by all parties 

as a result of further delay, and the fact that 

the two competing plans pay creditors in full and

Signed and Filed: October 28, 2019

________________________________________

DENNIS MONTALI

U.S. Bankruptcy Judge

Entered on Docket 

October 28, 2019

EDWARD J. EMMONS, CLERK 

U.S. BANKRUPTCY COURT 

NORTHERN DISTRICT OF CALIFORNIA

Case: 19-30088 Doc# 4499 Filed: 10/28/19 Entered: 10/28/19 16:24:27 Page 1 of

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that the proponents of those plans differ 

primarily about the environment within which the 

Debtor or the disaggregated entities will function 

in a post-confirmation world. The court is quite

aware of the philosophical differences that

separate Debtor and its parent from CPUC and the

other non-private objectors in particular. (Case 

No. 01-30923, Doc. No. 12296, March 4, 2003, at 

1-2)

A resolution followed with the help of an experienced 

mediator.

Now, more than sixteen years later in the Utility’s second 

case (this time with parent company), the need for mediation is 

far more obvious and the stakes unbelievably higher. After 

presiding over every hearing in these chapter 11 cases over the 

past nine months, the court is convinced that mediation should 

be attempted once again.

Certain parties are polarized; the emotions are running 

higher and higher, the staggering costs (economic and otherwise) 

are multiplying daily and very recent events that need not be 

repeated here but are obvious to everyone in Northern California 

might make a successful reorganization even more of a challenge.

On top of that, the clock is ticking on AB 1054 while the 

Tubbs Fire trial looms in January and the district court 

estimation hearings follow right behind in February.

Meanwhile, as stated frequently by the court and others, 

thousands of wildfire victims, who stand before the court as 

involuntary creditors, await some resolution, albeit imperfect, 

to try to restore their economic losses, consistent not only 

with AB 1054, but more importantly, as compelled by the moral 

necessity of doing so. 

Case: 19-30088 Doc# 4499 Filed: 10/28/19 Entered: 10/28/19 16:24:27 Page 2 of

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Under the extraordinary exigencies of the situation and the 

expressed willingness of some of the principal parties to 

participate in mediation, the court will exercise its inherent 

authority under 11 U.S.C. § 105 and order the principal parties 

to make a good faith effort to mediate whatever issues can be 

identified with the help of the same experienced mediator. The 

obvious goal is to confirm a chapter 11 plan in order to set in 

place the next stage of the complex process of compensating 

those victims for their losses. 

At the same time the numerous parties who chose to be 

creditors (in most instances unsecured creditors entitled to the 

same priority under the bankruptcy code), are equally entitled 

to what is due to them under applicable law.

Finally, based upon the current apparent state of things, 

equity owners are entitled to consideration of their rights 

under whatever alignment or realignment may follow as part of a 

chapter 11 plan.

For all of the forgoing reasons, and the myriad other 

reasons well-established in the complex record of these cases to 

date, 

IT IS HEREBY ORDERED, that Retired Bankruptcy Judge Randall 

J. Newsome (“Mediator”) is appointed Mediator in these cases. 

Mediator shall serve at the expense of the estate beginning 

as of the date of this order. He is entitled to be paid at 

hourly or daily rates (as regularly adjusted in accordance with 

his normal practice) as charged by him through JAMS where he 

regular performs as a mediator, plus his reasonable and 

necessary expenses (including lodging and travel) and a JAMS 

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management fee (to be determined) as set forth in the attached 

schedule. 

He is entitled to be paid by Debtors monthly upon his 

submission of monthly billings setting forth total time charges 

and a listing of his expenses, with copies provided to the 

United States Trustee and counsel for the two official 

committees. He is not required to submit detailed applications 

or otherwise comply with the procedures in place for 

professionals employed under Sections 327 or 1103 pursuant to 

this court’s Guidelines For Compensation and Expense

Reimbursements of Professionals, similar orders issued to date 

in these cases or the pending Fee Examiner protocols. He is 

required to maintain time records. His final compensation and 

allowance of expenses are subject to court approval upon 

completion of his services as Mediator.

The provisions of B.L.R. 9045-2(a), (b) and (c) regarding 

attendance at, or failure to attend, mediation sessions (whether 

in person, by video conference or telephone) as called by the 

Mediator shall be deemed to apply as to parties and their 

professionals and advisors. So too will the provisions of 

B.L.R. 9047-1 (a), (b) and (c) regarding confidentially. Other 

provisions of the civil and bankruptcy local rules apply as 

applicable, including B.L.R. 1001-2(b) and Civil. L.R. 16-

8(b)(2) and ADR Local Rules 7-2 and 8-2). 

Because of the time pressures on all parties, the Mediator 

and the court, all should understand that the court expects and 

directs all parties and their professionals and advisors to 

comply with any reasonable requests by the Mediator for active 

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attendance at and participation in any conferences or request by 

him for production of documents (as widely defined as possible). 

And because of limited resources of both the court and the 

Mediator, Debtors are directed to provide by overnight delivery 

hard copies of any items on the docket that he requests.

The court expects that once the Mediator has made initial 

contact with the principal parties and their professionals and 

advisers and has assessed the challenges he faces, he may decide 

(with or without their consent) to recommend the appointment of 

one or more additional mediators who possess needed requisite 

expertise and experience to join him in his efforts. He should 

do that on an expedited basis, with notice to the principal 

parties. The court expects to act promptly on any such

recommendation.

**END OF ORDER**

Case: 19-30088 Doc# 4499 Filed: 10/28/19 Entered: 10/28/19 16:24:27 Page 5 of

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Mediation Fee Schedule

Hon. Randall J. Newsome (Ret.)

JAMS agreement to render services is with the attorney, the party, and/or other representatives of the party.

Sacramento • San Francisco • Santa Rosa • Silicon Valley • Walnut Creek

www.jamsadr.com • Updated 05/01/19

PROFESSIONAL FEES

Daily Rate....................................................................... $7,500 Half Day Rate............................................................... $4,500

Includes up to 8 hours of session time on the scheduled day. Includes up to 4 hours of session time on the scheduled day.

• Other professional time (including additional session time, pre- and post-session reading and research, and conference calls) will be billed at $750 

per hour. 

• All travel expense are billed at actual cost

CASE MANAGEMENT FEE

• The Case Management Fee includes access to an exclusive nationwide panel of judges, attorneys, and other ADR experts, 

dedicated services including all administration through the duration of the case, document handling, and use of JAMS conference 

facilities including after hours and on-site business support. Weekends and holidays are subject to additional charges.

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