PG&E hopes to pursue $13.5 billion settlement plan

National News

SACRAMENTO, Calif. (KGET) — Even though Governor Gavin Newsom rejected PG&E’s reorganization plan, the utility is still hoping to follow through with its 13.5 billion dollar settlement with wildfire victims without the governor’s approval.

PG&E is hoping to keep its 13.5 billion dollar settlement with wildfire victims in tact, after Governor Newsom’s rejection of the company’s overall bankruptcy exit plan could jeopardize the agreement.

The settlement is part of the utility’s entire reorganization plan. Attorneys for the governor expressed concerns that the settlement requires victims attorneys to support the company’s plan. 

PG&E asked a judge in bankruptcy court today to consider removing the requirement for the governor’s approval in the hopes of meeting its deadline to get out of bankruptcy June 30th.

Governor Newsom rejected PG&E’s reorganization plan Friday saying he wants a complete overhaul of its board of directors and more oversight of the company.

He also said the plan doesn’t put PG&E in a proper financial position to provide safe, affordable and reliable power.

Newsom also wants the reorganization to make it easier for local governments to bid for PG&E equipment.

Attorneys for both the governor and PG&E say conversations and negotiations between the two are ongoing. 

We reached out directly to the governor’s office for comment but we haven’t heard back.

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