Please ensure Javascript is enabled for purposes of website accessibility
Gov. Newsom Criticizes PG&E’s Plan for New Board
gvw_ap_news
By Associated Press
Published 6 years ago on
March 29, 2019

Share

SACRAMENTO — California Gov. Gavin Newsom said Thursday that Pacific Gas & Electric Corp. plans to remake its board of directors with hedge fund financiers and people who have little experience in utility operations and safety, and he urged the utility’s leader to change course.

“With this move, PG&E would send a clear message that it is prioritizing quick profits for Wall Street over public safety and reliable and affordable energy service.” — Gov. Gavin Newsom

“With this move, PG&E would send a clear message that it is prioritizing quick profits for Wall Street over public safety and reliable and affordable energy service,” Newsom, a Democrat, said in a public letter to John Simon, the utility’s interim chief executive.

The San Francisco-based utility is in the midst of Chapter 11 bankruptcy proceedings after it said it could not afford billions of dollars in liability related to deadly California wildfires in 2017 and 2018. It had previously announced plans to replace most of its board by its annual shareholder meeting in May.

But the company has not announced its slate of candidates for the new board. Newsom’s office was briefed by PG&E executives on their proposed slate in recent days, spokesman Nathan Click said. The governor’s office is not releasing the names either.

Starting Deadly Blazes Across California

A spokeswoman for the utility did not directly address who the utility is planning to name for the board or when it will make an announcement. Lynsey Paulo said the utility understands “the serious concerns expressed by the governor” and his urgency.

“We recognize the importance of adding perspectives to the Board that will bring about the right changes in safety, as well as help address the serious operational and financial challenges the business faces now and in the future,” she said in an emailed statement.

PG&E, the nation’s largest utility, has faced intense scrutiny over its equipment’s role in starting deadly blazes across California. A federal judge is overseeing a separate criminal conviction PG&E received for its role in a 2010 gas line explosion that killed eight people.

Newsom said PG&E should remake its board with a majority of Californians with backgrounds as regulators, safety experts and in clean energy.

“Any new board member should be resolved to change the culture of the company, understand the concerns of ratepayers and demonstrate a commitment to the fair treatment of wildfire victims and employees,” his letter said.

Criticizing the Bankruptcy Declaration

BlueMountain Capital Management, a PG&E shareholder that has criticized the bankruptcy declaration, has put forward its own slate of 13 new board members.

“It was a very good thing for the governor to serve notice that replacing the board with the same kind of Wall Street interests that have put profits in front of safety for so many years is not going to solve the problem.” — Mark Toney, executive director

“PG&E needs a board with proven experience in safety, claims resolution, utility operations, finance and turnarounds, and California business and public policy,” the shareholder group said in an emailed statement.

Shareholders will elect a new board at the May 21 annual meeting, either voting for or against nominees put forward by a nominating and governance committee. Board members on average serve for more than seven years, according to information prepared ahead of the 2018 annual meeting. Board members for the corporation also serve on the board of the utility.

The Utility Reform Network, a consumer advocacy group, praised Newsom’s public comments.

“It was a very good thing for the governor to serve notice that replacing the board with the same kind of Wall Street interests that have put profits in front of safety for so many years is not going to solve the problem,” executive director Mark Toney said.

DON'T MISS

‘It’s Living Hell’: Nurses Say CA Addiction Recovery Program Ended Their Careers

DON'T MISS

Santa Who? Bizarre Christmas Traditions Stealing the Holiday Spotlight

DON'T MISS

New Decisions Boost California’s Zero-Emission Vehicle Mandate, but Major Hurdles Remain

DON'T MISS

Only $20K More to Bring Dolly Parton’s Imagination Library to Fresno

DON'T MISS

Jeffrey Sachs Warns of Looming US War With Iran

DON'T MISS

Cat House on the Kings Urgently Needs You to Donate Dollars and Adopt Your New Best Friend

DON'T MISS

The Surprising Sexual Politics of Nicole Kidman’s Kinky ‘Babygirl’

DON'T MISS

Why It’s Hard to Control What Gets Taught in Public Schools

DON'T MISS

FDA Approves Weight-Loss Drug to Treat Obstructive Sleep Apnea

DON'T MISS

In a Calendar Rarity, Hanukkah Starts This Year on Christmas Day

UP NEXT

New California Voter ID Ban Puts Conservative Cities at Odds With State

UP NEXT

University of California Campuses Resolve Discrimination Complaints Stemming From Gaza Protests

UP NEXT

California Declared an Emergency Over Bird Flu. How Serious Is the Situation?

UP NEXT

Chinese National Charged With Acting as Beijing’s Agent in Local California Election

UP NEXT

CA Lemon Law Will Provide Car Buyers Fewer Protections in 2025

UP NEXT

FBI Raids Home of LA Deputy Mayor Following City Hall Bomb Threat Probe

UP NEXT

White House Pushes to Find American Journalist Abducted in Syria

UP NEXT

Liberal Donors Plot to Overturn Republican House Majority in 2026

UP NEXT

The ‘Murder Hornet’ Has Been Eradicated From US, Officials Say

UP NEXT

Gov. Newsom Declares State of Emergency Over Bird Flu Outbreak

Only $20K More to Bring Dolly Parton’s Imagination Library to Fresno

4 hours ago

Jeffrey Sachs Warns of Looming US War With Iran

20 hours ago

Cat House on the Kings Urgently Needs You to Donate Dollars and Adopt Your New Best Friend

20 hours ago

The Surprising Sexual Politics of Nicole Kidman’s Kinky ‘Babygirl’

21 hours ago

Why It’s Hard to Control What Gets Taught in Public Schools

22 hours ago

FDA Approves Weight-Loss Drug to Treat Obstructive Sleep Apnea

22 hours ago

In a Calendar Rarity, Hanukkah Starts This Year on Christmas Day

22 hours ago

A Look at the $100 Billion in Disaster Relief in the Government Spending Bill

23 hours ago

It’s Eggnog Season. The Boozy Beverage Dates Back to Medieval England but Remains a Holiday Hit

23 hours ago

9-Year-Old Among 5 Killed in Christmas Market Attack in Germany

23 hours ago

‘It’s Living Hell’: Nurses Say CA Addiction Recovery Program Ended Their Careers

Bobbie Sage thought nursing would be her salvation. She was trapped in an abusive relationship with four kids and looking for a steady incom...

3 hours ago

3 hours ago

‘It’s Living Hell’: Nurses Say CA Addiction Recovery Program Ended Their Careers

4 hours ago

Santa Who? Bizarre Christmas Traditions Stealing the Holiday Spotlight

4 hours ago

New Decisions Boost California’s Zero-Emission Vehicle Mandate, but Major Hurdles Remain

4 hours ago

Only $20K More to Bring Dolly Parton’s Imagination Library to Fresno

20 hours ago

Jeffrey Sachs Warns of Looming US War With Iran

20 hours ago

Cat House on the Kings Urgently Needs You to Donate Dollars and Adopt Your New Best Friend

21 hours ago

The Surprising Sexual Politics of Nicole Kidman’s Kinky ‘Babygirl’

22 hours ago

Why It’s Hard to Control What Gets Taught in Public Schools

Help continue the work that gets you the news that matters most.

Search

Send this to a friend