State Lawmakers Responding To PG&E Planned Bankruptcy
Sacramento, CA — In response to the financial problems of Pacific Gas and Electric Company, California Governor Gavin Newsom says state leaders must now ensure “reliability, safety and affordability.”
Newsom held a press conference late yesterday following the announcement that PG&E is planning to file for bankruptcy before the end of the month. The Governor said he met with other lawmakers throughout the day to look at ways to keep ratepayer costs down but also ensure that wildfire victims get the money they are owed. No specific details were announced from the Governor.
PG&E reports that it faces $30-billion in potential damages from lawsuits filed in relation to wildfires that ignited over the past two years. The Associated Press reports that the lawsuits would not disappear under bankruptcy protection, but all wildfire claims would be consolidated into a single proceeding before a bankruptcy judge, and not a jury.
PG&E last filed for bankruptcy in 2001 and California faced an energy crisis that resulted in power outages. Newsom does not believe that will happen this time around because the state has an “abundance of energy.”
PG&E is the nation’s largest utility company and serves approximately 40-percent of Californians.