California Governor Gavin Newsom (D) threatened a state takeover of PG&E Corp. unless the beleaguered utility giant makes a swift exit from bankruptcy and improves its operations to reduce wildfire risks, Bloomberg News reported. “We are gaming out a backup plan if Pacific Gas and Electric is unable to secure its own fate and future,” Newsom said on Friday. Among options being considered are a state-led restructuring of the utility, he said. Newsom has repeatedly bashed PG&E for its handling of a series of intentional and unprecedented mass blackouts — intended to keep power lines from igniting fires during high winds — that have left millions of Californians in the dark. The governor has expressed frustration that the utility hasn’t moved faster to improve operations and speed up investments needed to prevent future shutoffs. Newsom said that ne will hold a meeting this week with PG&E executives, shareholders, wildfire victims and creditors to help make sure the company meets a state-mandated target to exit chapter 11 by June 30, 2020. “If the parties fail to reach an agreement quickly to begin this process of transformation, the state will not hesitate to step in and restructure the utility,” he said in a statement. “All options are on the table.”
