Reorganization: Supplier FAQs

Frequently Asked Questions

Supplier FAQ Printable version (PDF, 342 KB)

Why did PG&E file for Chapter 11?

The devastating and unprecedented wildfires of 2017 and 2018 have had a profound impact on our customers, employees and the communities we serve.
Resolving our legal liabilities and financial challenges will be enormously complex and will require us to address multiple stakeholder interests, including thousands of wildfire victims and others who have already made claims and likely thousands of others we expect to make claims.
Chapter 11 is expected to enable the continued safe delivery of natural gas and electric service to our customers, and support the orderly, fair and expeditious resolution of PG&E’s potential liabilities resulting from the Northern California wildfires.
This process will assure access to the financial resources necessary to support ongoing operations and enable PG&E to continue investing in our systems, infrastructure and critical safety efforts, including our Community Wildfire Safety Program, an additional precautionary safety measure implemented following the 2017 Northern California wildfires to further reduce wildfire risk.
This process also allows us to work with customers, civic leaders, regulators, policymakers and other key stakeholders to consider alternatives to provide for the safe delivery of natural gas and electricity and new safety solutions in an environment challenged by climate change.

Will PG&E continue in business after the Chapter 11 filing?

PG&E will remain in business to service its customers. The Chapter 11 filing will give PG&E an opportunity to address and resolve its financial situation while providing the ability to maintain ongoing operations.
As a result, PG&E will continue to require goods and services from our supplier community consistent with the past.
The Court granted PG&E approval to access up to $1.5 billion of its $5.5 billion in debtor-in-possession financing, which will provide sufficient liquidity to meet our post-petition obligations.
The DIP financing will also provide PG&E with necessary capital to ensure essential maintenance and continued investments in safety and reliability.
We will ask for final approval of the balance of the DIP financing and final approval of other first day motions at a hearing on February 27, 2019.
In accordance with the Bankruptcy Code, PG&E will continue to pay all undisputed invoices for post-petition goods and services in the ordinary course based on standard or agreed-upon terms.

Will PG&E continue to order goods and services from its suppliers?

PG&E will remain in business to service its customers. The Chapter 11 filing will give PG&E an opportunity to address and resolve its financial situation while providing the ability to maintain ongoing operations.
In accordance with the Bankruptcy Code, PG&E will continue to pay all undisputed invoices for post-petition goods and services in the ordinary course based on standard or agreed-upon terms.

Does PG&E have sufficient liquidity to meet its business obligations?

The Court granted PG&E approval to access up to $1.5 billion of its $5.5 billion in debtor-in-possession financing, which will provide sufficient liquidity to meet our post-petition obligations, including to our suppliers.
The DIP financing will also provide PG&E with necessary capital to ensure essential maintenance and continued investments in safety and reliability.
We will ask for final approval of the balance of the DIP financing and final approval of other first day motions at a hearing on February 27, 2019.

Am I going to be paid for invoices in the PG&E system prior to the Chapter 11 filing?

The Bankruptcy Code does not permit payment for goods and services received prior to the filing date except in very limited circumstances that must be authorized by the Bankruptcy Court.
Any claims for such goods and services will be addressed as part of the Chapter 11 process.
We sincerely regret any hardship this may cause.

How will my pre-petition claim be addressed? When will that be paid? Will I receive full recovery?

It is too early to make any estimate on potential recoveries for creditors.
Suppliers should consult with legal counsel to understand their specific rights and to address initial questions about the Chapter 11 process.
Goods and services provided will be categorized as either pre- or post-petition claims according to the date the goods and services were received.

Will suppliers be paid for goods and services provided after the filing date?

Under the Bankruptcy Code, the Company will pay all undisputed invoices for goods delivered and services provided during the post-petition period (i.e., after the Chapter 11 filing date, January 29, 2019) in the ordinary course based on standard or agreed-upon terms.
Please reach out to your usual sourcing contact or SupplierInquiries@pge.com with additional questions.

What happens to my invoices if I am not paid prior to the Chapter 11 filing date?

It is too early to make any estimate on potential recoveries for creditors.
Suppliers should consult with legal counsel to understand their specific rights and to address initial questions about the Chapter 11 process.
Goods and services provided will be categorized as either pre- or post-petition claims according to the date the goods and services were received.
All items determined to have been provided post-petition will be paid in the ordinary course on standard or agreed upon terms.
PG&E's claims agent, Prime Clerk, will be providing the appropriate forms once a deadline for filing claims has been set. Proof of claims forms and other information about the claims process will be available at the following website: https://restructuring.primeclerk.com/pge or by calling the Company’s claims agent, Prime Clerk, toll-free from the U.S., at 1-844-339-4217 or at 929-333-8977 for calls originating outside the U.S., or by sending an email to pgeinfo@primeclerk.com.

Do I follow the normal process to submit invoices for goods delivered or services provided PRIOR to the Chapter 11 filing (e.g. work performed in January)? Will these invoices be immediately paid or sent to the Bankruptcy Court?

Yes, you should follow the normal process for submitting invoices.
PG&E will institute a supplemental review process to determine whether or what portion of invoices submitted after the Chapter 11 filing date relate to pre-petition goods delivered or services provided.
All items determined to be goods and or services provided prior to the filing date will be aggregated with all other pre-petition invoices and will be addressed in the Chapter 11 process.
The Bankruptcy Code does not permit payment for goods and services received prior to the filing date except in very limited circumstance that must be authorized by the Bankruptcy Court.
All items determined to have been provided post-petition will be paid in the ordinary course on standard or agreed upon terms.
Goods and services provided will be categorized as either pre- or post-petition claims according to the date the goods and services were received.

Do I follow the normal process to submit an invoice for goods delivered or services provided AFTER the Chapter 11 filing date? Are there special steps or approvals required for my goods or services to be paid post-petition?

The process that suppliers will deploy after the Chapter 11 filing date for submitting invoices will not change from the current process.
PG&E will institute a supplemental review process to determine whether or what portion of invoices submitted after the Chapter 11 filing date relate to pre-petition goods delivered or services provided.
Goods and services provided will be categorized as either pre- or post-petition claims according to the date the goods and services were received.
All goods and services determined to have been provided post-petition will be paid in the ordinary course on standard or agreed upon terms.

What happens if my work started pre-petition and carried over into post-petition, do I need to send two bills?

Yes, you can send two separate invoices – one for the pre-petition period and the second for the post-petition period. Submitting separate invoices for pre- and post-petition claims will assist in expediting the review process.
Alternatively, if only one invoice is submitted, please clearly identify the date of goods or services received.
All items determined to be goods and or services provided prior to the filing date will be aggregated with all other pre-petition invoices and will be addressed in the Chapter 11 process.
All items determined to have been provided post-petition will be paid in the ordinary course on standard or agreed upon terms.
Goods and services provided will be categorized as either pre- or post-petition claims according to the date the goods and services were received.
You should consult with legal counsel as to your specific rights, based on your unique relationship with PG&E and the nature of the goods and services that you have provided.

Can I use my existing contract and purchase order, or do I need new contracts and purchase orders for post-petition work?

Yes – the process that suppliers will deploy after the Chapter 11 filing date for submitting invoices will not change from the current process.
PG&E will institute a supplemental review process to determine whether or what portion of invoices submitted after the Chapter 11 filing date relate to pre-petition goods delivered or services provided.
All items determined to be goods and or services provided prior to the filing date will be aggregated with all other pre-petition invoices and will be addressed in the Chapter 11 process.
All items determined to have been provided post-petition will be paid in the ordinary course on standard or agreed upon terms.
Goods and services provided will be categorized as either pre- or post-petition claims according to the date the goods and services were received.

To the extent a vendor doesn’t get relief under a First Day Motion, when will they eventually be paid for amounts owed for goods or services provided prior to the filing date?

Amounts owed for goods or services provided prior to the January 29 filing date will be addressed during the Chapter 11 process or under the Plan of Reorganization. The Plan of Reorganization will address all amounts owed.
Please reach out to your usual sourcing contact or SupplierInquiries@pge.com with additional questions.
Suppliers should also consult with legal counsel to understand their specific rights and to address initial questions about the Chapter 11 process.

Will there be a critical vendor motion? I have heard about other bankruptcy cases where "critical vendors" are allowed to be paid for pre-petition claims. How will I know if I am included in the motion?

There is no critical vendor motion. PG&E has received Court approval on an interim basis of an “Operational Integrity Supplier Motion,” providing extremely limited authority to honor certain pre-petition claims where the Company determines that the payment of such claims is necessary to provide their customers with continuous and uninterrupted gas and electric service, and execute related operations, in a safe and reliable manner.
There is no specific list of suppliers whose pre-petition claims, or a portion of any such claims, are to be addressed under this very limited authority.
Except for the limited authority granted by the Court, amounts owed resulting from goods or services provided prior to the petition date must be administered through the Chapter 11 process. PG&E is not permitted to pay such claims, in full or in part, until such time as a Plan of Reorganization is approved by the Court and becomes effective.
PG&E will continue to pay for post-petition goods and services in the ordinary course.
For all other inquiries, please reach out to your normal sourcing contact.

How do I file a proof of claim?

PG&E’s claims agent, Prime Clerk, will be providing the appropriate forms once a deadline for filing claims has been set. Proof of claims forms and other information about the claims process will be available at the following website: https://restructuring.primeclerk.com/pge or by calling the Company’s claims agent, Prime Clerk, toll-free from the U.S., at 1-844-339-4217 or at 929-333-8977 for calls originating outside the U.S., or by sending an email to pgeinfo@primeclerk.com.
Additional information is also available at pge.com/reorganization.

Who do I contact for more information?

Please reach out to your usual sourcing contact or SupplierInquiries@pge.com with additional questions.

Supplier FAQ Printable version (PDF, 342 KB)

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Reorganization information: Supplier FAQs

Frequently Asked Questions

Why did PG&E file for Chapter 11?

Will PG&E continue in business after the Chapter 11 filing?

Will PG&E continue to order goods and services from its suppliers?

Does PG&E have sufficient liquidity to meet its business obligations?

Am I going to be paid for invoices in the PG&E system prior to the Chapter 11 filing?

How will my pre-petition claim be addressed? When will that be paid? Will I receive full recovery?

Will suppliers be paid for goods and services provided after the filing date?

What happens to my invoices if I am not paid prior to the Chapter 11 filing date?

Do I follow the normal process to submit invoices for goods delivered or services provided PRIOR to the Chapter 11 filing (e.g. work performed in January)? Will these invoices be immediately paid or sent to the Bankruptcy Court?

Do I follow the normal process to submit an invoice for goods delivered or services provided AFTER the Chapter 11 filing date? Are there special steps or approvals required for my goods or services to be paid post-petition?

What happens if my work started pre-petition and carried over into post-petition, do I need to send two bills?

Can I use my existing contract and purchase order, or do I need new contracts and purchase orders for post-petition work?

To the extent a vendor doesn’t get relief under a First Day Motion, when will they eventually be paid for amounts owed for goods or services provided prior to the filing date?

Will there be a critical vendor motion? I have heard about other bankruptcy cases where "critical vendors" are allowed to be paid for pre-petition claims. How will I know if I am included in the motion?

How do I file a proof of claim?

Who do I contact for more information?