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

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Ben & Jerry’s Founder Arrested at Senate Hearing After Protesting War in Gaza

DON'T MISS

Trump Navigates Iran Nuclear Talks. Should US Insist on Zero Enrichment?

DON'T MISS

WNBA Set To Tipoff Season With Teams Looking To Challenge For Title

DON'T MISS

CA Gov. Gavin Newsom Tries To Rebrand Himself Ahead Of A Potential Presidential Run

DON'T MISS

Who Is Theo Von? The ‘Manosphere’ Podcaster With Trump In Qatar

DON'T MISS

Texas Lawmaker Behind Abortion Ban Now Seeks to Clarify Life-Saving Exceptions

DON'T MISS

Fresno, Wake Up. We’re Numb to Our DUI Problem

DON'T MISS

Is the Secret to CA Housing Affordability Buried in the Building Code?

DON'T MISS

Students Are Short-Circuiting Chromebooks for a Social Media Challenge

DON'T MISS

Trump says US and Iran ‘Sort of’ Agree on Terms for a Nuclear Deal

UP NEXT

CA Gov. Gavin Newsom Tries To Rebrand Himself Ahead Of A Potential Presidential Run

UP NEXT

Is the Secret to CA Housing Affordability Buried in the Building Code?

UP NEXT

US Supreme Court Scrutinizes Trump Bid to Restrict Birthright Citizenship

UP NEXT

The World Is Wooing US Researchers Shunned by Trump

UP NEXT

Bad News for California. State Budget Is $12 Billion in the Red

UP NEXT

US Overdose Deaths Fell 27% Last Year, the Largest One-Year Decline Ever Seen

UP NEXT

California Democrats Restore Penalties in Teen Sex Trafficking Bill After Backlash

UP NEXT

Trump Tariffs, Rising Health Care Costs Knock CA Budget Back Into Deficit

UP NEXT

Pacers Eliminate Top-Seeded Cavaliers, Advance to the Eastern Conference Finals

UP NEXT

Newsom Proposes Scaling Back Health Care for Immigrants in California

CA Gov. Gavin Newsom Tries To Rebrand Himself Ahead Of A Potential Presidential Run

1 hour ago

Who Is Theo Von? The ‘Manosphere’ Podcaster With Trump In Qatar

1 hour ago

Texas Lawmaker Behind Abortion Ban Now Seeks to Clarify Life-Saving Exceptions

1 hour ago

Fresno, Wake Up. We’re Numb to Our DUI Problem

2 hours ago

Is the Secret to CA Housing Affordability Buried in the Building Code?

2 hours ago

Students Are Short-Circuiting Chromebooks for a Social Media Challenge

2 hours ago

Trump says US and Iran ‘Sort of’ Agree on Terms for a Nuclear Deal

2 hours ago

Fresno Police Arrest Teen, Woman in Triple Shooting

3 hours ago

Hanford Is Valley Location for Statewide Teachers Protest on Saturday

3 hours ago

Marte Hits 2 Homers, Suárez Adds 3-Run Blast As D-Backs Outlast Giants

3 hours ago

Ben & Jerry’s Founder Arrested at Senate Hearing After Protesting War in Gaza

One of the founders of Ben & Jerry’s, Ben Cohen, was arrested Wednesday in Washington, D.C., after he interrupted a Senate committee hea...

29 minutes ago

Ben Cohen, left, and Jerry Greenfield, co-founders of Ben & Jerrys, speak during a protest in Washington on Thursday, May 20, 2021. Ben Cohen, a co-founder of the ice cream brand, was among a group that interrupted a Senate hearing on Wednesday, protesting Congress’s funding of Israel’s military. (Stefani Reynolds/The New York Times)
29 minutes ago

Ben & Jerry’s Founder Arrested at Senate Hearing After Protesting War in Gaza

52 minutes ago

Trump Navigates Iran Nuclear Talks. Should US Insist on Zero Enrichment?

60 minutes ago

WNBA Set To Tipoff Season With Teams Looking To Challenge For Title

1 hour ago

CA Gov. Gavin Newsom Tries To Rebrand Himself Ahead Of A Potential Presidential Run

1 hour ago

Who Is Theo Von? The ‘Manosphere’ Podcaster With Trump In Qatar

1 hour ago

Texas Lawmaker Behind Abortion Ban Now Seeks to Clarify Life-Saving Exceptions

2 hours ago

Fresno, Wake Up. We’re Numb to Our DUI Problem

2 hours ago

Is the Secret to CA Housing Affordability Buried in the Building Code?

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

Search

Send this to a friend