Gov. Newsom hints at gov’t control of PG&E if bankruptcy fizzles

“Gov. Gavin Newsom demanded Friday that Pacific Gas & Electric shareholders and executives, wildfire victims, bondholders and other parties involved in the company’s bankruptcy convene in Sacramento next week to work out a deal — and threatened to craft a government-led plan to restructure the state’s largest utility if an agreement isn’t reached quickly,” as the Los Angeles Times is reporting.

“’It is my hope that the stakeholders in PG&E will put parochial interests aside and reach a negotiated resolution so that we can create this new company and forever put the old PG&E behind us,’ Newsom said in a statement. ‘If the parties fail to reach an agreement quickly to begin this process of transformation, the state will not hesitate to step in and restructure the utility.’

“Newsom hinted at a possible government takeover of PG&E as public anger continues to grow in Northern California after back-to-back record-setting power shut-offs that left millions of customers in the dark for days on end. Under mounting pressure to take action, Newsom repeated at a news conference Friday a pledge to increase state oversight of the troubled company. He said the state’s intervention would ensure the utility that emerges from bankruptcy prioritizes safe, reliable and affordable service.”\

The rest of the article is here.

Author: jeffpelline

Jeff Pelline is a veteran editor and award-winning journalist - in print and online. He is publisher of Sierra FoodWineArt magazine and its website SierraCulture.com. Jeff covered business and technology for The San Francisco Chronicle for 12 years, and he was a founding editor and Editor of CNET News for eight years, among other positions. Jeff has a bachelor's degree from UC Berkeley and a master's from Northwestern University. His hobbies include sailing, swimming, and trout fishing in the Sierra. View all posts by jeffpelline