The fate of PG&E Corp.’s $13.5 billion deal to resolve wildfire claims as part of its bankruptcy case lies most immediately in the hands of California Gov. Gavin Newsom (D), the San Francisco Chronicle reported. By Friday, Newsom must decide if the agreement with victims’ attorneys PG&E announced one week earlier complies with a new state wildfire law he championed, according to terms the company disclosed on Monday. If the governor approves it, the PG&E parent company and subsidiary Pacific Gas and Electric Co. will be on track to clear the most central hurdle in their bankruptcy, though complications could still arise. If Newsom doesn’t sign off, PG&E’s agreement will automatically terminate — unless the company can amend it to his liking. Newsom has not yet made a decision about whether the agreement complies with California Assembly Bill 1054, the state law he backed that creates a fund PG&E could tap to protect itself from future fire costs. In order to access the fund, PG&E has to resolve its bankruptcy by June 30.
