California governor rejects PG&E bankruptcy plan
California Governor Gavin Newsom rejected a bankruptcy reorganization plan submitted by Pacific Gas & Electric, the state's largest investor-owned utility…
Newsom on Friday said PG&E's proposal --which included a $13.5 billion settlement with victims of wildfires - failed to meet the requirements of a recently enacted wildfire law - known as Assembly Bill 1054.
PG&E disputed Newsom's findings.
The governor also said PG&E's plan, including a proposed $13.5 billion settlement with victims of wildfires blamed on its power lines, would leave the company with a weakened capital structure.
The governor's decision complicates the company's push to EXIT bankruptcy and provide billions of dollars to victims of devastating wildfires in 2017 and 2018 sparked by the utility's power lines.
In recent months, PG&E resorted to widespread power shut-offs that left hundreds of thousands of its customers without electricity for days at a time during periods of extremely high winds and dry conditions.
The blackouts enraged consumers, regulators and politicians, including Newsom.. who accused PG&E of failing to invest in proper maintenance and upgrades of its power system.
The embattled utility now has until Tuesday to further amend its bankruptcy reorganization plan to Newsom's satisfaction…
