FOX Business’ Susan Li discusses the devastation from the ongoing wildfires that continue to scorch the state.
SACRAMENTO, Calif. — California Gov. Gavin Newsom said Friday that he wants to speed up the troubled Pacific Gas & Electric bankruptcy case so the company can be restructured in time for next year’s wildfire season.
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Newsom said he is calling a meeting of wildfire victims and PG&E executives, shareholders and creditors next week to accelerate what the Democratic governor called “a consensual resolution” to the bankruptcy case.
PG&E SHAREHOLDERS COULD GET WIPED OUT
PG&E filed for bankruptcy earlier this year after a 2018 wildfire mostly destroyed the town of Paradise and killed 85 people. The utility is facing up to $30 billion in potential damages from recent fires that were started by its equipment.
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Shareholders and creditors are battling for control of the company and have put forth competing plans for the utility to emerge from bankruptcy.
The company has come under increased scrutiny in recent weeks as it has pre-emptively shut off power for millions of Californians as it tries to prevent downed power lines from starting fires.
CALIFORNIA WILDFIRES HITTING LOCAL ECONOMY
The shutoffs have angered residents, businesses and local governments, who say the company has done a poor job of communicating.
Smoke engulfs around the Ronald Reagan Library during the Easy Fire, Wednesday, Oct. 29, 2019, in Simi Valley, Calif. A new wildfire erupted Wednesday in wind-whipped Southern California, forcing the evacuation of the library and nearby homes, as both ends of the state struggled with blazes, dangerously gusty weather and deliberate blackouts. (AP Photo/ Christian Monterrosa)
“The creativity that so many people desire for PG&E to be a new company that prioritizes safety, understands the communities it serves, and is responsive to the needs of customers can only happen if we first get out of bankruptcy court,” Newsom said.
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He said the state would not hesitate to step in and restructure the utility if the parties fail to reach an agreement quickly to begin a transformation.
“All options are on the table,” Newsom said.
