California utility scrambles to renegotiate wildfire deal

National News

FILE – In this Nov. 9, 2018 file photo, Pacific Gas & Electric crews work to restore power lines in Paradise, Calif. California Gov. Gavin Newsom has rejected Friday, Dec. 13, 2019, a bankruptcy reorganization plan that Pacific Gas and Electric reached just last week with thousands of wildfire victims. Newsom says in a five-page letter to PG&E CEO William D. Johnson that the plan’s most important elements are providing safe and reliable power to its customers. (AP Photo/Rich Pedroncelli, File)

SAN FRANCISCO, Calif. (AP) — California Gov. Gavin Newsom’s opposition to Pacific Gas & Electric’s restructuring plan is forcing the nation’s largest utility to go back to the negotiating table and come up with a solution quickly.

Just last week, the San Francisco-based company struck a $13.5 billion settlement with thousands of people who lost homes, businesses and family members in a series of devastating fires that drove PG&E into bankruptcy.

The utility filed an amended reorganization plan after striking a settlement with the victims. But Newsom said Friday the plan didn’t go far enough in addressing what he considers its most important elements: providing safe and reliable power to PG&E customers.

Now, the company has until Tuesday to appease Newsom and get him to sign off on the plan. 

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