1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

XAVIER BECERRA, SBN 118517

Attorney General of California 

MARGARITA PADILLA, SBN 99966 

Supervising Deputy Attorney General 

JAMES POTTER, SBN 166992 

Deputy Attorney General 

1515 Clay Street, 20th Floor 

P.O. Box 70550 

Oakland, CA 94612-0550 

Telephone: (510) 879-0815 

Fax: (510) 622-2270 

Margarita.Padilla@doj.ca.gov 

James.Potter@doj.ca.gov 

STEVEN H. FELDERSTEIN, SBN 059678 

PAUL J. PASCUZZI, SBN 148810 

FELDERSTEIN FITZGERALD 

WILLOUGHBY PASCUZZI & RIOS LLP 

500 Capitol Mall, Suite 2250 

Sacramento, CA 95814 

Telephone: (916) 329-7400 

Fax: (916) 329-7435 

sfelderstein@ffwplaw.com 

ppascuzzi@ffwplaw.com 

Attorneys for California Department of 

Transportation, et al. 

XAVIER BECERRA, SBN 118517

Attorney General of California 

DANETTE VALDEZ, SBN 141780 

ANNADEL ALMENDRAS, SBN 

192064 

Supervising Deputy Attorneys General 

455 Golden Gate Avenue, Suite 11000 

San Francisco, CA 94102-7004 

Telephone: (415) 510-3367 

Fax: (415) 703-5480 

Danette.Valdez@doj.ca.gov 

Annadel.Almendras@doj.ca.gov 

UNITED STATES BANKRUPTCY COURT 

NORTHERN DISTRICT OF CALIFORNIA 

SAN FRANCISCO DIVISION 

In re: 

PG&E CORPORATION 

- and – 

PACIFIC GAS AND ELECTRIC 

COMPANY, 

Debtors.

Bankruptcy Case

No. 19-30088 (DM) 

Chapter 11 

(Lead Case) 

(Jointly Administered) 

 Affects PG&E Corporation 

 Affects Pacific Gas and 

Electric Company 

 Affects both Debtors 

Date: December 11, 2019 

Time: 10:00 a.m. 

Ctrm: 17 

Judge: Dennis Montali 

LIMITED OBJECTION OF THE CALIFORNIA STATE AGENCIES TO

MOTION OF DEBTORS PURSUANT TO 11 U.S.C. § 1121(d) TO EXTEND

THE EXCLUSIVE SOLICITATION PERIOD [DOCKET NO. 4825]

Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 1 of

41
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

-1- 

The California Department of Transportation (“Caltrans”), California Underground 

Facilities Safe Excavation Board (“Dig Safe Board”), California Department of Parks and 

Recreation (“State Parks”) and California Department of Water Resources (“DWR”) 

(collectively, the “California State Agencies”) hereby file this limited objection and reservation of 

rights with respect to the Motion of Debtors Pursuant to 11 U.S.C. § 1121(d) to Extend the 

Exclusive Solicitation Period (Docket No. 4825) (the “Motion”) based on the following: 

1. The Debtors represent in the Motion that they “are current on payment of their 

postpetition obligations[.]” See Motion at 15:5-6; Boken Declaration1

 at ¶ 8. However, the 

California State Agencies assert the Debtors owe them approximately $1.4 million in unpaid postpetition obligations as described in more detail below. 

2. Counsel for the California State Agencies has contacted counsel for the Debtors 

regarding the unpaid post-petition obligations to several California State Agencies. Based on this 

communication, the Debtors are working with the various California State Agencies to confirm 

what post-petition amounts remain unpaid and pay any undisputed amounts. 

3. The specific unpaid post-petition obligations owed to the California State 

Agencies are as follows: 

a. Caltrans: The Debtors owe Caltrans over $600,000 for past-due obligations 

that arose post-petition for certain permits, and the post-petition deficiency continues to increase 

monthly. Caltrans has been in communication with the Debtors’ regarding these amounts. While 

the unpaid post-petition invoices had previously been sent to PG&E, at PG&E’s request and in an 

attempt to resolve the matter consensually, Caltrans is in the process of providing additional 

copies of these invoices to the Debtors. Once all applicable invoices have been provided and 

verified by the Debtors, the Debtors expect to be in a more informed position to discuss payment 

for the undisputed amounts. 

b. Dig Safe Board: Dig Safe Board is a board within the California 

Department of Forestry and Fire Protection. Dig Safe Board is owed post-petition monthly 

regulatory fees under Government Code section 4216.16 in the amount of $584,659.13 that have 

1

 Capitalized terms not otherwise defined shall have the same meaning as the Motion. 

Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 2 of

41
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

-2- 

become due after January 29, 2019. The post-petition amounts owed to Dig Safe Board are set 

forth in Proof of Claim No. 79375 filed by Dig Safe Board on October 21, 2019. See 

Supplemental Statement to Proof of Claim No. 79375 at 2:26 – 3:24. For the Court’s 

convenience, a copy of Proof of Claim No. 79375 is attached as Exhibit A to this limited 

objection. The Debtors and Dig Safe Board have made progress with respect to these amounts, 

and outstanding invoices for undisputed amounts due are expected to be submitted to the Debtor 

for payment by the end of this week. 

c. State Parks: The Debtors owe State Parks (on behalf of the Office of 

Historic Preservation) more than $100,000 for past-due obligations some of which arose postpetition under a contract between the Utility and State Parks. An invoice was sent to the Utility in 

June 2019 that remains unpaid, and State Parks continues to incur costs under the contract with 

the Utility at a rate of approximately $17,000 per month. The Debtors have asked State Parks to 

clarify what unpaid amounts relate to the post-petition period so those amounts can be paid. State 

Parks is working to provide this information to the Debtors. 

d. DWR: DWR is the lead agency in coordinating the California Cooperative 

Snow Surveys program (“CCSS”). As reflected in Proof of Claim No. 77978 filed by DWR on 

October 18, 2019, the Debtors owe approximately $38,000 for their share of the costs for the 

CCSS program for 2019. See Supplemental Statement to Proof of Claim No. 77978 at 3:4-7. For 

the Court’s convenience, a copy of Proof of Claim No. 77978 is attached as Exhibit B to this 

limited objection. The Debtors have asked DWR to provide an invoice covering the post-petition 

period so the appropriate amounts can be paid. 

4. Pending confirmation that all post-petition obligations owed by the Debtors to the 

California State Agencies are paid in full, the California State Agencies submit this limited 

objection to preserve their objection to the Debtors’ statement that the Debtors are current on all 

post-petition obligations. There may be other post-petition obligations due and payable by the 

Debtors, and the California State Agencies reserve all rights. 

5. Neither this objection nor any subsequent appearance, pleading, proof of claim, 

claim or suit is intended or shall be deemed or construed as: 

Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 3 of

41
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

-3- 

a. a consent by the California State Agencies to the jurisdiction of this Court 

or any other court with respect to proceedings, if any, commenced in any case against or 

otherwise involving the California State Agencies; 

b. a waiver of any right of the California State Agencies to (i) have an 

Article III judge adjudicate in the first instance any case, proceeding, matter or controversy as to 

which a Bankruptcy Judge may not enter a final order or judgment consistent with Article III of 

the United States Constitution, (ii) have final orders in non-core matters entered only after de 

novo review by a District Court Judge, (iii) trial by jury in any proceeding so triable in the 

Chapter 11 Cases or in any case, controversy, or proceeding related to the Chapter 11 Cases, 

(iv) have the United States District Court withdraw the reference in any matter subject to 

mandatory or discretionary withdrawal, or (v) any and all rights, claims, actions, defenses, setoffs, 

recoupments or remedies to which the California State Agencies are or may be entitled under 

agreements, in law or in equity, all of which rights, claims, actions, defenses, setoffs and 

recoupments are expressly reserved hereby; or 

c. a waiver of any objections or defenses that the State of California, the 

California State Agencies or any other agency, unit or entity of the State of California may have 

to this Court’s jurisdiction over the State of California, the California State Agencies or such 

other agency, unit or entity based upon the Eleventh Amendment to the United States 

/// 

/// 

/// 

/// 

/// 

/// 

/// 

/// 

/// 

/// 

Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 4 of

41
1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

14 

15 

16 

17 

18 

19 

20 

21 

22 

23 

24 

25 

26 

27 

28 

-4- 

Constitution or related principles of sovereign immunity or otherwise, all of which objections and 

defenses are hereby reserved. 

Dated: December 4, 2019 Respectfully submitted, 

XAVIER BECERRA 

Attorney General of California 

MARGARITA PADILLA 

Supervising Deputy Attorney General 

By: /s/ Paul J. Pascuzzi____________________________ 

STEVEN H. FELDERSTEIN 

PAUL J. PASCUZZI 

FELDERSTEIN FITZGERALD 

WILLOUGHBY PASCUZZI & RIOS LLP 

Attorneys for California Department of Transportation, 

California Underground Facilities Safe Excavation 

Board, California Department of Parks and Recreation 

and California Department of Water Resources 

Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 5 of

41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 6 of

41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 7 of

41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 8 of

41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 9 of

41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 10

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 11

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 12

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 13

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 14

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 15

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 16

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 17

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 18

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 19

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 20

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 21

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 22

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 23

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 24

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 25

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 26

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 27

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 28

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 29

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 30

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 31

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 32

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 33

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 34

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 35

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 36

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 37

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 38

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 39

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 40

of 41
Case: 19-30088 Doc# 4976 Filed: 12/04/19 Entered: 12/04/19 14:38:51 Page 41

of 41