pg e plan reorganization attached csfb synopsis pg e plan reorganization por key successful consummation por able move pg e retained generating assets primarily diablo canyon nuclear hydro cpuc jurisdiction ferc jurisdiction disaggregation assets genco disco electransco gastransco current cost service generation rate cpuc assets approximately 2 8 cents per kwh por envisions ppa genco disco approximately 4 5 cents per kwh ferc would use concept benchmarking approving rate benchmarking market rate comparison por contemplates rate increase existing average generation rate 9 4 cents per kwh lower cdwr revenue requirement cpuc could possibly reduce rates interim could give cpuc cover alleging por rate increase critical legal point por preemption bankruptcy court doctrine federal law preempt state law part por judge montali approve move pg e envisions por consummation 12 31 02 given precedent setting nature move surely adverse cpuc attitude process could drag longer fully adjudicated appeals process claims por consumation would pay 60 cents cash 40 cents reconstituted notes designed trade par interest would paid por confirmation consummation 403 million px credits claims listed contested challenges listed based 1 rate freeze ended 2 effect ferc price mitigation px clearing price regards michael