The company originally planned to transfer an entire 132,000-acre property to a new subsidiary, along with the energy plants, when it filed for bankruptcy. However, the bankruptcy plan concerned environmentalists, who say that the lands would be subject to poor management or possibly sold for development use.
Currently, the watershed lands are mostly undeveloped. PG&E's new revision plan says that it will keep 60% of the watershed lands and transfer a large portion of its hydro plants to free-market subsidiaries. The $8.3 billion assets will help PG&E get loans to pay off their debts, which accrued while the company tried to keep up with rising electricity prices.
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