California Governor Gavin Newsom (D) wants PG&E Corp. to add state-appointed members to its board as part of the utility giant’s reorganization, Bloomberg News reported. Newsom’s administration pushed for this, along with several other conditions, to be included in PG&E’s restructuring plan during a meeting yesterday with the company and other parties in its bankruptcy case. Newsom also wants a governance structure that would give these board members greater management authority over the utility if it fails to meet certain safety performance standards, the governor’s office said yesterday. The pressure on Newsom to force an overhaul at PG&E has escalated in recent weeks as the company plunged millions into darkness to keep its power lines from igniting wildfires. The company filed for chapter 11 protection in January after its equipment was tied to a series of 2017 and 2018 blazes that left it with $30 billion in estimated liabilities. Earlier this month, Newsom threatened to take over PG&E if the company fails to emerge from bankruptcy by a state-imposed deadline of June 30, 2020, and improves its operations before next year’s wildfire season.
