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KLEE, TUCHIN, BOGDANOFF 

& STERN LLP

1999

AVENUE OF THE STARS, THIRTY-NINTH FLOOR

LOS 

ANGELES, CALIFORNIA 90067

TELEPHONE: 310-407-4000

Kenneth N. Klee (State Bar No. 63372)

David M. Stern (State Bar No. 67697)

Samuel M. Kidder (State Bar No. 284015)

KLEE, TUCHIN, BOGDANOFF & STERN LLP

1999 Avenue of the Stars, Thirty-Ninth Floor

Los Angeles, California 90067

Telephone: 310-407-4000

Facsimile: 310-407-9090

Email: kklee@ktbslaw.com

dstern@ktbslaw.com 

skidder@ktbslaw.com

Attorneys for NextEra Energy, Inc. and

NextEra Energy Partners, L.P.1

UNITED STATES BANKRUPTCY COURT

NORTHERN DISTRICT OF CALIFORNIA

SAN FRANCISCO DIVISION

In re:

PG&E CORPORATION,

-andPACIFIC GAS AND ELECTRIC COMPANY,

Debtors.

Bankruptcy Case

No. 19-30088 (DM)

Chapter 11

(Lead Case)

(Jointly Administered)

PPA COUNTERPARTIES’ RESPONSE

TO MOTION OF THE AD HOC 

COMMITTEE OF SENIOR 

UNSECURED NOTEHOLDERS TO 

TERMINATE THE DEBTORS’ 

EXCLUSIVE PERIODS PURSUANT TO 

SECTION 1121(d)(1) OF THE 

BANKRUPTCY CODE

Date: July 24, 2019

Time: 9:30 a.m. (PDT)

Place: United States Bankruptcy Court

Courtroom 17, 16th Floor

San Francisco, CA 94102

Objection Deadline: July 18, 2019

4:00 p.m. (PDT)

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).

 

1 Pursuant to Rule 3-4(a)(1) of the Local Rules for the United States District Court for the 

Northern District of California, made applicable to bankruptcy cases and adversary proceedings 

pursuant to Rule 1001-2(a) of the Bankruptcy Rules for the Northern District of California, in 

multiparty proceedings, the Court and parties-in-interest shall refer to the signature page 

appended to this pleading for the full list of parties hereto.

Case: 19-30088 Doc# 3068 Filed: 07/18/19 Entered: 07/18/19 15:20:10 Page 1 of

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KLEE, TUCHIN, BOGDANOFF 

& STERN LLP

1999

AVENUE OF THE STARS, THIRTY-NINTH FLOOR

LOS 

ANGELES, CALIFORNIA 90067

TELEPHONE: 310-407-4000

The undersigned PPA Counterparties2 hereby submit this response to the Motion of the Ad 

Hoc Committee of Senior Unsecured Noteholders to Terminate the Debtors’ Exclusive Periods 

Pursuant to Section 1121(d)(1) of the Bankruptcy Code [Docket No. 2741] (the “Exclusivity 

Motion”).

3

1. According to the Debtors, “the Utility’s PPAs [Power Purchase Agreements] 

represent contractual commitments aggregating approximately $42 billion.”4 The undersigned 

PPA Counterparties represent a significant percentage of that amount.

2. As emphasized in the Official Committee Statement, the Wildfire Safety 

Legislation sets a hard deadline for the Debtors’ bankruptcy exit of June 30, 2020. That 

legislation represents changed circumstances from those that existed when the Court, in May,

extended the exclusivity period until September 26, 2019.

3. In light of the complexity of this bankruptcy case, the inevitability of plan-related 

litigation and negotiations and the June 30, 2020 deadline, it is essential that the plan process 

commence forthwith so that a viable plan capable of garnering support and being confirmed (and 

that could be the Debtors’ plan or a plan proposed by another party) can have a chance of meeting 

what must be viewed as an immutable deadline.

4. As emphasized in the Official Committee Statement, exclusivity is no longer 

appropriate. In this case, “the termination of exclusivity may actually be a positive development 

 

2 The “PPA Counterparties” are, collectively, AV Solar Ranch 1, LLC, Calpine Corporation, 

Capital Dynamics, Inc., Clearway Energy, Inc., Clearway Energy Group LLC, Diablo Winds, 

LLC, EDF Renewables, Inc., Enel Green Power North America, Inc., Exelon Corporation, FTP 

Power LLC, MC Shiloh IV Holdings, LLC, NextEra Energy, Inc., NextEra Energy Partners, 

L.P., NRG Energy, Inc., Solar Partners II, LLC, Solar Partners VIII, LLC, and TerraForm 

Power, Inc.

3 Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to 

them in the Exclusivity Motion or in the Statement of the Official Committee of Unsecured 

Creditors Regarding the Ad Hoc Committee of Senior Unsecured Noteholders’ Motion to 

Terminate the Debtors’ Exclusive Periods Pursuant to Section 1121(d)(1) of the Bankruptcy 

Code [Docket No. 3064] (“Official Committee Statement”).

4 Debtors’ Complaint for Declaratory Judgment and Permanent Injunctive Relief [Adv. Pro. No. 

19-03003-DM, Docket No. 1] ¶ 11.

Case: 19-30088 Doc# 3068 Filed: 07/18/19 Entered: 07/18/19 15:20:10 Page 2 of

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3

KLEE, TUCHIN, BOGDANOFF 

& STERN LLP

1999

AVENUE OF THE STARS, THIRTY-NINTH FLOOR

LOS 

ANGELES, CALIFORNIA 90067

TELEPHONE: 310-407-4000

insofar as other parties are permitted to file a competing plan, thereby fostering an atmosphere of 

competition that may prove beneficial to all parties involved.” In re Basil St. Partners, LLC, 477 

B.R. 856, 869 (Bankr. M.D. Fla. 2012); see also In re Adelphia Commc’ns Corp., 352 B.R. 578, 

590 (Bankr. S.D.N.Y. 2006) (“[T]he test is better expressed as determining whether terminating 

exclusivity would move the case forward materially, to a degree that wouldn’t otherwise be the 

case.”); In re Dow Corning Corp., 208 B.R. 661, 670 (Bankr. E.D. Mich. 1997) (“[T]he primary 

consideration should be whether or not [terminating exclusivity] would facilitate moving the case 

forward.”).

5

5. Accordingly, and without taking any position on the plan term sheet attached to the 

Exclusivity Motion, the PPA Counterparties join with the Official Committee in supporting 

termination of the Debtors’ Exclusivity Periods immediately.

DATED: July 18, 2019 /s/ David M. Stern

Kenneth N. Klee

David M. Stern

Samuel M. Kidder

KLEE, TUCHIN, BOGDANOFF & STERN LLP

Attorneys for NextEra Energy, Inc. and NextEra 

Energy Partners, L.P.

-and-

 

5 Dow Corning and Adelphia were cited approvingly by the Debtors in the Corrected Motion of 

Debtors Pursuant to 11 U.S.C. § 1121(d) to Extend Exclusive Periods [Docket No. 1797] at 9, 

10, 15 & 16.

Case: 19-30088 Doc# 3068 Filed: 07/18/19 Entered: 07/18/19 15:20:10 Page 3 of

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KLEE, TUCHIN, BOGDANOFF 

& STERN LLP

1999

AVENUE OF THE STARS, THIRTY-NINTH FLOOR

LOS 

ANGELES, CALIFORNIA 90067

TELEPHONE: 310-407-4000

/s/ Michael P. Esser

Mark McKane, P.C.

Michael P. Esser

KIRKLAND & ELLIS LLP 

555 California Street 

San Francisco, California 94104 

Telephone: (415) 439-1400 

mark.mckane@kirkland.com 

michael.esser@kirkland.com 

-andDavid R. Seligman, P.C. (admitted pro hac vice)

KIRKLAND & ELLIS LLP

300 North LaSalle Street 

Chicago, Illinois 60654

Telephone: (312) 862-2000

david.seligman@kirkland.com 

Attorneys for Calpine Corporation

-and-

/s/ Risa Lynn Wolf-Smith

Risa Lynn Wolf-Smith (admitted pro hac vice)

HOLLAND & HART LLP 

555 17th Street, Suite 3200 

Denver, Colorado 80202 

Telephone: (303) 295-8011

RWolf@hollandhart.com

Attorney for Diablo Winds, LLC 

-andCase: 19-30088 Doc# 3068 Filed: 07/18/19 Entered: 07/18/19 15:20:10 Page 4 of

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KLEE, TUCHIN, BOGDANOFF 

& STERN LLP

1999

AVENUE OF THE STARS, THIRTY-NINTH FLOOR

LOS 

ANGELES, CALIFORNIA 90067

TELEPHONE: 310-407-4000

/s/ Richard W. Esterkin

Richard W. Esterkin 

MORGAN, LEWIS & BOCKIUS LLP 

300 South Grand Avenue, Floor 22 

Los Angeles, California 90071-3132 

Telephone: (213) 612-2500 

richard.esterkin@morganlewis.com 

-andEdwin E. Smith (admitted pro hac vice)

MORGAN, LEWIS & BOCKIUS LLP

One Federal Street

Boston, Massachusetts 02110-1726

Telephone: (617) 951-8615

edwin.smith@morganlewis.com

Attorneys for Exelon Corporation and AV Solar Ranch 1, 

LLC

-and-

/s/ Thomas C. Mitchell

Thomas C. Mitchell

ORRICK, HERRINGTON & SUTCLIFFE LLP

The Orrick Building

405 Howard Street

San Francisco, California 94105

Telephone: (415) 773-5732

tcmitchell@orrick.com

-andDebra L. Felder (admitted pro hac vice)

ORRICK, HERRINGTON & SUTCLIFFE LLP

1152 15th Street, NW

Washington, DC 20005

Telephone: (202) 339-8567

dfelder@orrick.com

Attorneys for EDF Renewables, Inc.

-andCase: 19-30088 Doc# 3068 Filed: 07/18/19 Entered: 07/18/19 15:20:10 Page 5 of

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KLEE, TUCHIN, BOGDANOFF 

& STERN LLP

1999

AVENUE OF THE STARS, THIRTY-NINTH FLOOR

LOS 

ANGELES, CALIFORNIA 90067

TELEPHONE: 310-407-4000

/s/ C. Luckey McDowell

C. Luckey McDowell (admitted pro hac vice)

Ian E. Roberts (admitted pro hac vice)

SHEARMAN & STERLING LLP

1100 Louisiana

Suite 3300

Houston, Texas 77002

Tel: (713) 354-4875

Email: Luckey.McDowell@Shearman.com

Ian.Roberts@Shearman.com

-andDaniel Laguardia (CA Bar No. 314654)

SHEARMAN & STERLING LLP

535 Mission Street

25th Floor

San Francisco, CA 94105

Tel: (415) 616-1114

Email: Daniel.Laguardia@Shearman.com 

Attorneys for Clearway Energy, Inc., Clearway Energy 

Group LLC, MC Shiloh IV Holdings, LLC, NRG Energy, 

Inc., Solar Partners II, LLC, Solar Partners VIII, LLC,

and TerraForm Power, Inc.

-and-

/s/ David B. Levant

David B. Levant (admitted pro hac vice) 

Jennifer N. Slocum (admitted pro hac vice)

STOEL RIVES LLP 

600 University Street, Suite 3600

Seattle, Washington 98101

Telephone: (206) 624-0900

Facsimile: (206) 386-7500

david.levant@stoel.com

jennifer.slocum@stoel.com

Attorneys for Enel Green Power North America, Inc., FTP

Power LLC, and Capital Dynamics, Inc.

Case: 19-30088 Doc# 3068 Filed: 07/18/19 Entered: 07/18/19 15:20:10 Page 6 of

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