California Governor says PG&E restructuring plan 'falls woefully short'
California Governor Gavin Newsom late Friday rejected PG&E's plan to pay Northern California wildfire victims and exit bankruptcy. In a letter to PG&E Chief Executive Bill Johnson, the governor declared that the company's proposal "falls woefully short" of a law outlining requirements that would allow the utility to receive state assistance. He states, "The resolution of this bankruptcy must yield a radically restructured and transformed utility that is responsible and accountable." Among other things, Newsom demanded an entirely new slate of directors who are subject to state approval, and a structure that would allow PG&E's operating license to be transferred "to the state or a third-party when circumstances warrant." Newsom added, "For too long, PG&E has been mismanaged, failed to make adequate investments in fire safety and fire prevention, and neglected critical infrastructure. PG&E has simply violated the public trust." Shares of PG&E closed Friday down 48c to $11.24. Reference Link