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."
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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.
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