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 5 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

Paul McCartney Becomes Britain’s First Billionaire Musician

DON'T MISS

California Cracked Down After a Crash Killed 13 Farmworkers. Why Are Workers Still Dying on the Road?

DON'T MISS

These Rare Chainsaws Are Worth Big Bucks to Collectors

DON'T MISS

Jewish Lobby Presses California Lawmakers to Combat Antisemitism

DON'T MISS

Opinion: How Urban Renewal Ruined Everything

DON'T MISS

California Wine Squeezed Dry: Insiders Say It’s Time to Pull up Acreage

DON'T MISS

Alabama Mercedes Employees Overwhelmingly Vote Against Joining Union, Slowing UAW Effort in South

DON'T MISS

Stock Market Today: Dow Finishes Above 40,000 to Cap Wall Street’s Latest Winning Week

DON'T MISS

Where Do State Lawmakers Stand on War in Gaza, Campus Protests?

DON'T MISS

High-Speed Rail Now Working to Extend Valley Line to 171 Miles

UP NEXT

Jewish Lobby Presses California Lawmakers to Combat Antisemitism

UP NEXT

Where Do State Lawmakers Stand on War in Gaza, Campus Protests?

UP NEXT

$20 Billion: The Delta Tunnel’s New Price Tag

UP NEXT

Psychedelic Therapy and Workers’ Rights Bills Fail to Advance in California’s Tough Budget Year

UP NEXT

Man Sentenced to 30 Years for Hammer Attack on Nancy Pelosi’s Husband

UP NEXT

The Latest Hot Spot for Illegal Border Crossings Is San Diego. But Routes Change Quickly

UP NEXT

Lainey Wilson Triumphs at 2024 Academy of Country Music Awards

UP NEXT

California Professor to Stand Trial for Death of Pro-Israel Protester

UP NEXT

Gig Companies Spent $200M to Write a Labor Law. State Supreme Court Could Throw It Out.

UP NEXT

Suicide of 10-Year-Old Indiana Boy Linked to Horrific Bullying at School

Jewish Lobby Presses California Lawmakers to Combat Antisemitism

1 day ago

Opinion: How Urban Renewal Ruined Everything

1 day ago

California Wine Squeezed Dry: Insiders Say It’s Time to Pull up Acreage

1 day ago

Alabama Mercedes Employees Overwhelmingly Vote Against Joining Union, Slowing UAW Effort in South

1 day ago

Stock Market Today: Dow Finishes Above 40,000 to Cap Wall Street’s Latest Winning Week

1 day ago

Where Do State Lawmakers Stand on War in Gaza, Campus Protests?

1 day ago

High-Speed Rail Now Working to Extend Valley Line to 171 Miles

1 day ago

Beautify Fresno Combines Dog Adoption, Litter Removal in Unique Saturday Event

1 day ago

Bulldogs’ Gilmore Named MW Softball Pitcher of the Year

1 day ago

The Latest | Dozens of Israeli Protesters Attack a Truck in an Apparent Effort to Block Gaza Aid

1 day ago

Paul McCartney Becomes Britain’s First Billionaire Musician

LONDON — Paul McCartney is a billionaire Beatle. According to figures released Friday, the former member of the Fab Four is the first Britis...

12 hours ago

12 hours ago

Paul McCartney Becomes Britain’s First Billionaire Musician

14 hours ago

California Cracked Down After a Crash Killed 13 Farmworkers. Why Are Workers Still Dying on the Road?

14 hours ago

These Rare Chainsaws Are Worth Big Bucks to Collectors

1 day ago

Jewish Lobby Presses California Lawmakers to Combat Antisemitism

1 day ago

Opinion: How Urban Renewal Ruined Everything

1 day ago

California Wine Squeezed Dry: Insiders Say It’s Time to Pull up Acreage

1 day ago

Alabama Mercedes Employees Overwhelmingly Vote Against Joining Union, Slowing UAW Effort in South

1 day ago

Stock Market Today: Dow Finishes Above 40,000 to Cap Wall Street’s Latest Winning Week

MENU

CONNECT WITH US

Search

Send this to a friend