Hunton Andrews Kurth Advises Pacific Gas and Electric Company on $860 Million Offering of Senior Secured Recovery Bonds

Hunton Andrews Kurth LLP acted as counsel to Pacific Gas and Electric Company (“PG&E”) and PG&E Recovery Funding LLC (the “Issuer”) on an SEC-registered offering of $860,399,000 aggregate principal amount of Senior Secured Recovery Bonds, Series 2021-A (the “Bonds”) by the Issuer, a special purpose entity, wholly-owned by PG&E, as sponsor, depositor and servicer. The Bonds were sold pursuant to a financing order issued by the California Public Utilities Commission. The Bond proceeds will be used to purchase recovery property from PG&E. In accordance with the financing order, PG&E will use the proceeds to reimburse itself for previously-incurred recovery costs, including the retirement of related debt, relating to eligible projects consisting of certain wildfire risk mitigation capital expenditures eligible for recovery under California’s securitization statute, which was adopted to address costs associated with wildfires (“Wildfire Financing Law”). This offering, which is the second utility securitization pursuant to the Wildfire Financing Law, closed on November 12, 2021.

The Issuer is organized as a Delaware limited liability company and PG&E is its sole member. It was formed for the purpose of purchasing, owning and administering recovery property, issuing the Bonds and performing activities incidental thereto.

The Hunton Andrews Kurth team included Michael F. Fitzpatrick, Adam O’Brian, S. Ashley Jaber, Michelle G. Chan and Patrick Jamieson. Jason Harbour assisted with certain bankruptcy advice, Shawn Regan and Kate Perkins assisted with certain constitutional law matters, Eric Nedell and Robert Johnson assisted with certain UCC/security interest matters, and Cary Tolley, Anna Page and Tim Strother provided tax advice.