-----Original Message-----
From:  AMarks@milbank.com@ENRON 
[mailto:IMCEANOTES-AMarks+40milbank+2Ecom+40ENRON@ENRON.com] 
Sent: Friday, May 18, 2001 6:55 PM
To: PAronzon@milbank.com; DCain@milbank.com; DCreed@milbank.com; 
MDayen@milbank.com; SDemeo@milbank.com; MDiamond@milbank.com; 
EFeo@milbank.com; ygonzales@milbank.com; CGooding@milbank.com; 
SKramer@milbank.com; TKreller@milbank.com; AMarks@milbank.com; 
KMcspadden@milbank.com; VMoody@milbank.com; RMoore@milbank.com; 
PNaegely@milbank.com; FNeufeld@milbank.com; LOliveira@milbank.com; 
JSchwarz@milbank.com; MSorochinsky@milbank.com; CUrquhart@milbank.com; 
awirum@pillsburywinthrop.com; fallon_annamarie@jpmorgan.com; 
alafaire@exchange.ml.com; byoung@llgm.com; bgreene2@mail.state.tn.us; 
bholman@whitecase.com; bkrakauer@sidley.com; fishbcr@whitecase.com; 
ceklund@llgm.com; clara.strand@bankofamerica.com; dan.faltermeier@dynegy.com; 
david.adante@davey.com; dnelsen@gwfpower.com; 
elizabeth.h.baird@bankofamerica.com; lengel@brobeck.com; gbush@bankofny.com; 
grant_kolling@city.palo-alto.ca.us; gbaer@pillsburywinthrop.com; 
jostevenson@bankofny.com; jlhuemoe@llgm.com; jwhite@brobeck.com; 
jbloom@whitecase.com; jpiassick@kilpatrickstockton.com; 
john.c.herbert@dynegy.com; jklauber@llgm.com; jeisenberg@exchange.ml.com; 
juhase_kathleen@jpmorgan.com; kcoleman@gibsondunn.com; ksmith@deltapower.com; 
krussak@pillsburywinthrop.com; Mellencamp, Lisa; Tribolet, Michael; 
mlurie@exchange.ml.com; mahrens@smrh.com; mhindus@pillsburywinthrop.com; 
nmillard@whitecase.com; toth_norma@jpmorgan.com; 
pwarden@pillsburywinthrop.com; robert_b._lynch@chase.com; 
rblum@thelenreid.com; rkampfner@brobeck.com; srahman@deltapower.com; 
tponsford@smrh.com; tpatters@sidley.com; tmilne@mail.state.tn.us; 
wevanoff@sidley.com; allison.m.young@us.pwcglobal.com; 
gerald.keenan@us.pwcglobal.com; james.drzemiecki@us.pwcglobal.com; 
jwilson@saybrook.net; jschotz@saybrook.net; jrosenthal@saybrook.net; 
jthomas@saybrook.net; freddie.reiss@us.pwcglobal.com; 
margery.a.neis@us.pwcglobal.com; michael.hamilton@us.pwcglobal.com; 
mjhamilt@bellatlantic.net; rocky.ho@us.pwcglobal.com; 
tom.lumsden@us.pwcglobal.com; bliden@rogersassoc.com; 
ccarter@rogersassoc.com; daney@rogersassoc.com; mklink@rogersassoc.com; 
rrogers@rogersassoc.com; sfischer-holmes@rogersassoc.com
Subject: Judge's Ruling against Ratepayers Committee
Importance: High


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>> 
This e-mail message may contain legally privileged and/or confidential 
information. If you are not the intended recipient(s), or the employee 
or agent responsible for delivery of this message to the intended 
recipient(s), you are hereby notified that any dissemination, 
distribution or copying of this e-mail message is strictly prohibited. 
If you have received this message in error, please immediately notify 
the sender and delete this e-mail message from your computer. 

 - RatepayersCommMem5-18.pdf