Bankruptcy Court Rules It Has Exclusive Jurisdiction to Determine Rejection of Power Purchase Agreements

Earlier this year, PG&E Corporation and its utility subsidiary, Pacific Gas & Electric Company (PG&E), filed the largest utility bankruptcy in U.S. history, and the sixth-largest corporate bankruptcy ever. As we previously noted, a crucial issue in this case was whether the U.S. Bankruptcy Court for the Northern District of California alone will have exclusive jurisdiction to approve any PG&E rejection of long-term power purchase agreements (PPA), or whether the Federal Energy Regulatory Commission (FERC) must also approve such rejection.