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California Governor Says No to PG&E Bankruptcy Plans After It Fails to Meet Wildfire Safety Regulations

Unless PG&E amends its plans, the government will not allow the company to restructure and pay billions to those who lost their homes in recent fires.

California Gov. Gavin Newsom has rejected the bankruptcy reorganization plan by California utility company PG&E that would have released billions of dollars in payments to victims of recent fires. Newsom gave the utility, which was found at fault for many of the recent fires, until Tuesday to bring its plans in line with new wildfire safety regulations. Reuters reports that the plan includes a proposed $13.5 billion settlement to victims of wildfires that were started by the company’s faulty power lines. “In my judgment, the amended plan and the restructuring transactions do not result in a reorganized company positioned to provide safe, reliable and affordable service to its customers, as required by AB 1054,” Newsom wrote to PG&E. The company filed for Chapter 11 bankruptcy after being found culpable for wind-driven blazes in 2017 and 2018 that killed 85 people and destroyed the town of Paradise.