Published
4 years agoon
SAN FRANCISCO — Pacific Gas & Electric’s plan to emerge from bankruptcy faced another threat from California Gov. Gavin Newsom during a Tuesday court hearing that set the stage for a potentially dramatic showdown later this month.
A Pacific Gas & Electric truck leaves the company’s Oakland Service Center Tuesday, Feb. 11, 2020, in Oakland, Calif. Pacific Gas & Electric’s plan to emerge from bankruptcy faced another threat from California Gov. Gavin Newsom during a Tuesday court hearing that set the stage for a potentially dramatic showdown later this month. Newsom’s lawyers told U.S. Bankruptcy Judge Dennis Montali they want to grill PG&E about the company’s plans to borrow billions of dollars and sell more stock to help pay the $13.5 billion owed to more than 75,000 victims of catastrophic wildfires ignited by the utility’s equipment and negligence. (AP Photo/Ben Margot)
The unexpected twist Tuesday marks the latest sign of ongoing tensions between PG&E and Newsom. The Democratic governor has threatened to engineer a government takeover attempt of the nation’s largest utility unless it replaces its entire board of directors and lessens its debt load when it exits bankruptcy.
Newsom has insisted that PG&E bring in new leadership to lessen the chances it repeats the bad decisions that led to devastating wildfires and deliberate blackouts affecting 2 million people last fall. Newsom also wants to ensure PG&E has the financial flexibility to pay for an estimated $40 billion to $50 billion in badly needed improvements to its outdated electrical grid.
PG&E has pledged to replace at least some of the 14 people currently on its board as part of its efforts to appease Newsom. But Tuesday’s push to question PG&E about its financing plan shows the governor still has serious qualms of what the utility is trying to do.
Montali on Tuesday also rejected a plea to overturn a $13.5 settlement with wildfire victims approved two months ago.
Related Story: What Happens If California Takes Over PG&E?
Will Abrams, a Sonoma County resident who lost his home in a 2107 fire, argued the complex settlement is being forced upon confused and still-distressed victims as they try to rebuild their lives. He called for “more sunlight on the process, more sunlight on the information.”
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