Hunton Andrews Kurth Advises Pacific Gas and Electric Company on $983 Million Offering of Senior Secured Recovery Bonds, Series 2022-A

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 $983,362,000 aggregate principal amount of Senior Secured Recovery Bonds, Series 2022-A (the “Bonds”) by the Issuer, a special purpose entity, wholly-owned by PG&E, as sponsor, depositor and servicer. The Bonds are the second series of recovery bonds sold by the Issuer and were sold pursuant to a financing order issued by the California Public Utilities Commission in August 2022 and California’s securitization statute, which was adopted to address costs associated with wildfires (the “Wildfire Financing Law”). The Bond proceeds will be used to purchase the 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 related to certain wildfire risk mitigation capital expenditures eligible for recovery under the Wildfire Financing Law that have been incurred by PG&E from the period beginning October 2021 through October 2022. This offering, which is the sixth utility securitization pursuant to the Wildfire Financing Law and the fourth securitization sponsored by PG&E, closed on November 30, 2022.

The Issuer is organized as a Delaware limited liability company and PG&E is its sole member. It was formed solely to purchase, own and administer recovery property, issue recovery bonds (including the Bonds) secured by recovery property and perform activities incidental thereto.

The Hunton Andrews Kurth team included Michael F. Fitzpatrick, Adam O’Brian, Patrick Jamieson, Michelle G. Chan, Matthew A. Hayes, Reuben H. Pearlman and Jingyi “Alice” Yao. 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; Cary Tolley, Anna Page and Tim Strother provided tax advice; and Leslie Okinaka provided ERISA advice.