While a federal district judge was dismissing the appeal of two dissenting state regulators challenging the Pacific Gas and Electric Co. bankruptcy settlement, the utility filed last week for some $1.29 billion in Chapter 11 costs and fees for attorneys, consultants, investment bankers and accountants. This is the final accounting for the biggest utility bankruptcy in U.S. history, settling some $13 billion in claims.

U.S. District Judge Vaughn Walker dismissed for lack of sufficient standing an appeal by Loretta Lynch and Carl Wood, two California Public Utilities Commission members who have been a vocal minority opposing the PG&E-CPUC settlement that was approved on a 3-2 vote last December. Using outside counsel as they have since the beginning of their appeal process, the two regulators have subsequently appealed Walker’s latest decision to the ninth circuit federal appeals court.

In the accounting for the $1 billion plus costs, PG&E’s utility excluded any payment to the state regulatory commission for the two commissioners’ appeal, which is reportedly being done pro bono by an outside law firm. As part of the settlement, PG&E was obligated to pay the CPUC’s $24 million bill for outside counsel to have the state commission participate in the three-year Chapter 11 proceeding.

U.S. Bankruptcy Judge Dennis Montali has set a Sept. 15 hearing in his San Francisco court on the proposed recovery of the utility’s bankruptcy litigation costs, which included $16.5 million just for photocopying, faxing, travel and other out-of-pocket expenses for the lawyers, accountants and investment bankers.

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