California Gov. Newsom rejects PG&E's bankruptcy plan
The Kincade Fire ignited four minutes after a malfunction on a PG&E transmission tower.
SACRAMENTO, Calif. - California Gov. Gavin Newsom has rejected a bankruptcy reorganization plan that Pacific Gas and Electric reached just last week with thousands of wildfire victims, including a $13.5 billion settlement.
Newsom says in a five-page letter to PG&E CEO William D. Johnson that the plan's most important elements should be providing safe and reliable power to its customers.
He says the proposed plan does not achieve that. People lost homes, businesses and family members in a series of devastating fires blamed on the utility's negligence and outdated infrastructure.
One of the attorneys representing thousands of fire victims said Friday night he hopes PG&E can still pull together a revised proposal that will satisfy the governor.
PG&E responded to Newsom's letter late Friday and argued that their restructuring plan does meet the requirements of AB 1054 and is the best course forward for stakeholders.
"Looking ahead, we are committed to getting victims paid, continuing to implement changes across our business to improve our operations for the long term and emerging from Chapter 11 as a financially, sound utility," the utility wrote.
San Jose Mayor Sam Liccardo, who has been a vocal critic of PG&E as of late, had this to say:
"I commend Governor Gavin Newsom for recognizing the flaws of PG&E's proposed bankruptcy plan. We're ready to get to work to ensure that our residents get what they deserve: a safe, reliable responsive utility."
KTVU contributed to this story.