Dianne Feinstein: “This amendment seeks to give certain entities a favorable status in the event that California utilities fall into…”

“This amendment seeks to give certain entities a favorable status in the event that California utilities fall into bankruptcy. That is what the Wyden amendment does. The letter goes on: Many companies have provided power to California's consumers and [this association] believes emphatically that all these entities deserve to be fully and fairly compensated. As do I, Mr. President. However, it is inappropriate for the Senate to try and create winners and losers in this desperate situation. Rather than orderly resolution, this legislation could lead to a premature declaration of bankruptcy and the inevitable liquidation of the California electric utilities' assets in a legal free-for-all. The American Gas Association, on behalf of all of the natural gas companies involved in this, also states the same thing. They go on, however, to say: As the preferred creditors would in actuality control the bankruptcy proceedings through their status, in effect Chapter 11 reorganization would not be an option. Liquidation of assets through Chapter 7 filing would result. Such action could cause serious disruption and harm to the utility customers, not to mention the non-preferred creditors.”