California governor slams PG&E’s bankruptcy plan



California Gov. Gavin Newsom voiced strong opposition to PG&E’s plan to emerge from bankruptcy, raising questions about the viability of the company’s reorganization effort.

In January, faced with approximately $30 billion in wildfire-related liabilities, PG&E filed for Chapter 11 bankruptcy. The company recently announced a $13.5 billion settlement that would resolve all claims related to the deadly and destructive Northern California wildfires that PG&E allegedly caused.

On Friday, Newsom authored a letter to PG&E CEO William Johnson disapproving of the utility’s reorganization plan. Newsom argued PG&E’s plan does not put the company in a position to provide safe, reliable and affordable electricity to customers.

“The state remains focused on meeting the needs of Californians including fair treatment of victims – not on which Wall Street financial interests fund an exit from bankruptcy,” Newsom wrote.

California’s governor also criticized the utility for causing recent blackouts across the state as a preemptive measure to prevent wildfires. Likewise, he demanded changes to PG&E’s board of directors.

Newsom stated in the letter to Johnson that PG&E falls woefully short of complying with AB 1054, the state’s new wildfire fund law. AB 1054 allows utilities to tap into a pool of state funds in order to pay wildfire-related claims.

The governor argued PG&E’s reorganization plan is not financially viable without AB 1054 funds.

Under AB 1054, the California Public Utilities Commission must review PG&E’s reorganization plan. If the PUC does not approve of the plan, PG&E’s bankruptcy process could drag on.

PG&E’s stock plunged from above $11 to below $9 when markets opened Monday morning.

Please, be respectful of others. Attack ideas, not users. Personal insults, shill or troll accusations, hate speech, and other uncivil comments will be removed. The comments posted represent the opinion of the writer and do not represent the views or policies of the website.

Leave a Reply