‘California is poised to take over’: Gov. Gavin Newsom addresses PG&E bankruptcy negotiations

California

SACRAMENTO (KRON) — On the anniversary of PG&E’s bankruptcy announcement, Gov. Gavin Newsom gave a glimpse into negotiations with the embattled utility.

“It’s provided a tremendous opportunity for the state. It turned out to be a Godsend,” the governor said. 

Speaking at a Public Policy Institute of California event Wednesday, the governor maintained his threat that if PG&E doesn’t appease the administration in its reorganization plan, the state will take control of the company.

“There’s a culture there that transcends, and if it doesn’t change that state of California is poised to take over,” Newsom said. 

After the event, Newsom said bankruptcy negotiations between the state and PG&E could continue over the next few weeks. 

“We are making progress on governance, we need to make progress on financing,” Newsom said. “If we don’t see progress in the next few weeks then we’ll be laying out the architecture for a very detailed plan for a state takeover.” 

Newsom says no matter what happens,the state will make sure wildfire victims get taken care of. 

“What I don’t want is a utility that comes out of bankruptcy limping. That’s not going to service the needs or desires of the state,” the governor said. 

The state set deadline for PG&E to get out of bankruptcy is still June 30.

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