PG&E Corp. and Gov. Gavin Newsom have made a deal on overhauling PG&E’s operations, removing one of the last remaining obstacles to the utility’s efforts to exit bankruptcy. Newsom’s office announced Friday that PG&E will commit billions of dollars in additional spending to prevent wildfires, meeting one of his critical demands.
In a filing in U.S. Bankruptcy Court, PG&E also agreed to a process that could have the entire company put up for sale if it doesn’t pull out of bankruptcy by June 30, a deadline set by the Legislature.
“This is the end of business as usual for PG&E,” the governor said in a prepared statement. “We secured a totally transformed board and leadership structure for the company, real accountability tools to ensure safety and reliability and billions more in contributions from shareholders to ensure safety upgrades are achieved.”