Newsom rejects PG&E plan to restructure debt

California

SACRAMENTO, California (KSEE/KGPE) – Governor Gavin Newsom has rebuffed a plan by embattled utility PG&E to restructure it’s debt, in what’s being viewed as a major setback for the company.

Newsom sent a scathing letter to PG&E saying that the plan falls well short of the state’s requirements for the utility to move out of the biggest bankruptcy in United States history.

In the letter Newsom writes “PG&E’s chapter 11 bankruptcy cases punctuate more than two decades of mismanagement, misconduct, and failed efforts to improve it’s safety culture”.

Newsom goes on to say ” PG&E’s recent management of the public safety power shutoffs did not restore public confidence”.

The utility declared bankruptcy at the beginning of the year after equipment failures were blamed for causing massive wildfires over the last several years. PG&E now has approximately thirty $30 billion dollars in liabilities.

The company’s equipment was also found to be to blame for the 2018 Camp Fire that left 85 people dead and burned down thousands of homes and structures.

The utilities path forward now appears more uncertain than ever. There has been talk that the State Of California might take over operations of the beleaguered company, but at this point that option does not appear to be popular with Sacramento lawmakers.

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