California governor rejects PG&E bankruptcy plan, says company 'violated public trust'


Come back with a better plan.
That's essentially what California Gov. Gavin Newsom (D) on Friday told Pacific Gas & Electric after he rejected the utility company's plan to pull itself out of bankruptcy and pay victims of California's wildfires. Newsom said the proposal didn't meet safety requirements under state law and that PG&E fell "woefully short" of the safety benchmark. The company reportedly won't receive state assistance without implementing major changes to its plan. Without that money, it's future is murky.
"For too long, PG&E has been mismanaged, failed to make adequate investments in fire safety and fire prevention, and neglected critical infrastructure," Newsom said in a letter. "PG&E has simply violated the public trust."
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.

Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
PG&E, whose faulty equipment has been blamed for sparking some the state's recent fires, is on the hook for $30 billion in financial liabilities from California. The company didn't actually need Newsom's approval, but asked him to weigh in anyway. Now it looks like the gamble backfired, and PG&E is pushing back against Newsom's comments, arguing its plan does conform to the safety requirements.
PG&E has until Tuesday to revise its plan. Read more at The Wall Street Journal and The Los Angeles Times.
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Tim is a staff writer at The Week and has contributed to Bedford and Bowery and The New York Transatlantic. He is a graduate of Occidental College and NYU's journalism school. Tim enjoys writing about baseball, Europe, and extinct megafauna. He lives in New York City.
-
October 13 editorial cartoons
Cartoons Monday's political cartoons include Donald Trump's consolation prize, government workers during shutdown, and more
-
Can Gaza momentum help end the war in Ukraine?
Today's Big Question Zelenskyy’s request for long-range Tomahawk missiles hints at ‘warming relations’ between Ukraine and US
-
The Israeli hostages and Palestinian prisoners being released
The Explainer Triumphant Donald Trump addresses the Israeli parliament as families on both sides of the Gaza war reunite with their loved ones
-
Renewables top coal as Trump seeks reversal
Speed Read For the first time, renewable energy sources generated more power than coal, said a new report
-
China vows first emissions cut, sidelining US
Speed Read The US, the world’s No. 2 emitter, did not attend the New York summit
-
At least 800 dead in Afghanistan earthquake
speed read A magnitude 6.0 earthquake hit a mountainous region of eastern Afghanistan
-
Massive earthquake sends tsunami across Pacific
Speed Read Hundreds of thousands of people in Japan and Hawaii were told to evacuate to higher ground
-
FEMA Urban Search and Rescue chief resigns
Speed Read Ken Pagurek has left the organization, citing 'chaos'
-
Wildfires destroy historic Grand Canyon lodge
Speed Read Dozens of structures on the North Rim have succumbed to the Dragon Bravo Fire
-
Search for survivors continues after Texas floods
Speed Read A total of 82 people are confirmed dead, including 28 children
-
EPA is reportedly killing Energy Star program
speed read The program for energy-efficient home appliances has saved consumers billions in energy costs since its 1992 launch