2001 PG&E files for bankruptcy. PG&E attempts to implement an auction to sell off many of its hydroelectric facilities

In 2001, PG&E files for bankruptcy. PG&E attempts to implement an auction to sell off many of its hydroelectric facilities, including the Phoenix Project, but the auction does not take place. TUD and PG&E enter into a settlement under which more water could be provided by PG&E to TUD. The settlement is never approved by the California Public Utilities Commission and is not implemented.