PG&E looks to salvage $13.5B settlement after Newsom rejects bankruptcy exit plan

California

SACRAMENTO (KRON) — PG&E is hoping to keep its $13.5 billion settlement with wildfire victims in tact, after Gov. 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 Tuesday to consider removing the requirement for the governor’s approval in the hopes of meeting its deadline to get out of bankruptcy June 30.

Gov. 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. 

KRON4 reached out directly to the governor’s office for comment but we haven’t heard back.

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