Pacific Gas and Electric Co. (PG&E) and its parent, PG&E Corp., outlined the key elements of their joint updated Chapter 11 Plan of Reorganization in federal and state filings Friday.
The San Francisco-based utility described its latest plan as “meeting both the letter and spirit” of California’s wildfire mitigation law, including being rate neutral on average to customers.
“The plan also addresses concerns Gov. Gavin Newsom raised in his Dec. 13, 2019, public letter to the company,” the company said. “PG&E appreciates the governor’s input and is open to further discussions with his office and other stakeholders should they have additional input as the process unfolds.”
In testimony submitted in the California Public Utilities Commission Plan of Reorganization proceeding and its updated plan with the bankruptcy court in San Francisco, PG&E said it is on track to have its Chapter 11 plan confirmed by June 30, the deadline for participating in the state’s new go-forward wildfire fund.
“Upon emergence from Chapter 11, PG&E will be a financially stable company positioned to continue prioritizing safe operations and customer focus while meeting California’s energy needs and clean energy goals in a changed climate,” according to the filings.
In response to public comments by Newsom and other state officials in recent months, executives stressed nearly a dozen safety, governance, operational and financial issues being addressed in PG&E’s latest plan.
They include revising the boards for the parent and utility; regionalizing utility operations to improve local community focus; appointing an independent safety adviser; and creating senior executive positions responsible for risk management, safety and a nonemployee safety oversight committee.
In addition, the reorganization calls for “reforming executive compensation” to further tie it to safety performance; paying in excess of $25 billion to wildfire victims; and “emerging with a financial structure protective of utility rates and helping assure long-term success.”
CEO Bill Johnson said the reorganization outlines a “re-imagined utility” that enhances its safety, operating and governance programs.