Pacific Gas and Electric Co. will not award any of its planned $130 million in 2018 performance bonuses to thousands of employees after deciding the payments were inappropriate in light of the company’s bankruptcy and the wildfires that have killed dozens of people and destroyed tens of thousands of homes, the San Francisco Chronicle reported. John Simon, interim CEO of the utility’s parent company PG&E Corp., announced the decision on Friday in an internal message to employees. The payments were set to be awarded next month and about 14,000 employees were eligible, PG&E previously told the bankruptcy court. PG&E had stressed publicly that it was not seeking to award the bonuses to any of its top executives this year, and union leaders described them as part of the normal pay for the thousands of employees who had participated in the program. While PG&E is scrapping its requested performance pay for last year, the company does plan to seek permission to institute a different kind of program for 2019 which could give employees incentive awards as soon as April, Simon said. Read more.
In related news, California lawmakers would carve out a key role for themselves in the bankruptcy of Pacific Gas and Electric Co. under a proposal introduced on Friday in the Legislature, the Los Angeles Times reported. The legislation marks the latest attempt by state officials to intervene in the reorganization of California’s largest utility, a process playing out in federal court that legislators fear could lead to higher bills for customers and leave wildfire victims uncompensated for losses. The proposal would require the California Public Utilities Commission to seek approval from the Legislature for any increase in PG&E’s electricity rates. Customers took on the burden of billions of dollars in rate hikes after PG&E last filed for bankruptcy in 2001. “In effect, this requirement gives the Legislature a say in how the reorganization impacts PG&E customers — who otherwise would have no representation in any consideration of rate changes,” said Sen. Jerry Hill (D-San Mateo), who introduced the bill. PG&E cited some $30 billion in legal liability when it filed for bankruptcy protection in late January. The filing came after state investigators found the company’s equipment sparked dozens of wildfires in recent years, in some cases because of negligence. Under chapter 11 bankruptcy, the company will continue to operate as it develops a plan to pay off debts. Read more.
