PG&E short-term incentive plan approval hearing continued to April 23

By Caroline Salls

Pittsburgh, April 10 – PG&E Corp.’s short-term incentive plan hearing has been continued to April 23, according to an entry made Tuesday on the docket of the company’s Chapter 11 case pending in the U.S. Bankruptcy Court for the Northern District of California.

The hearing was continued from April 9.

The docket entry said witness testimony will take place at the April 23 hearing.

Last month, the U.S. Trustee overseeing PG&E Corp.’s Chapter 11 case objected to approval of the short-term incentive plan.

Acting U.S. trustee Andrew R. Vara said in his objection that PG&E estimates that the cost of the plan will be about $235 million but that it could be as much as $350 million.

“Even the $235 million amount represents an increase of $105 million (or nearly 81%) over the expected cost of the 2018 STIP,” the objection said.

In addition, Vara said the motion for approval of the plan fails to provide enough information for the court and parties in interest to assess whether the 2019 plan is limited to non-insiders and is “primarily incentive in nature.”

Vara said PG&E has also failed to demonstrate in the motion that the plan is “justified by the facts and circumstances of the case,” as it does not address the maximum bonuses for eligible employees, the historical bonuses paid to eligible employees or current and prior year salary information for eligible employees.

The electric and natural gas utility is based in San Francisco. The company filed bankruptcy on Jan. 29 under Chapter 11 case number 19-30088.

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