Newsom Says PG&E Has Yet to Address His Restructuring Concerns

California Governor Gavin Newsom is once again raising objections to PG&E Corp.’s restructuring plan, saying the bankrupt utility giant hasn’t changed a thing to address concerns he raised last month.

Since detailing his issues with PG&E’s reorganization plan in a letter Dec. 13, Newsom said his office has been engaged in talks with the utility but said it has “yet to make a single modification” to the proposal to shore up “its many deficiencies.” The plan, as it stands, doesn’t comply with state law, Newsom said in a court filing Wednesday.

The governor went on to accuse PG&E of trying to take advantage of the Chapter 11 process and to force state officials into approving a “sub-optimal” plan. Newsom said the company’s plan continues to depend on substantial debt and short-term bridge financing that would leave the utility without the resources it needs to invest billions of dollars in safety upgrades.

Newsom and PG&E were also said to have clashed over a provision that the governor wanted to include in its restructuring plan that would allow the state to take over the utility’s operations if it doesn’t hit certain safety and performance targets.