A clause that would allow California to take over bankrupt utility giant PG&E Corp. under certain circumstances has emerged as a big sticking point in negotiations between the company and Governor Gavin Newsom (D), Bloomberg News reported. Newsom wants the power company to include a provision in its reorganization proposal that would allow the state to take control of its assets if it fails to meet performance and safety metrics. Negotiating such a clause has become one of the biggest challenges in talks between the company and the governor’s office. Newsom’s support is crucial to PG&E’s efforts to exit the biggest utility bankruptcy in U.S. history by a state-imposed deadline of June 30. The power giant filed for chapter 11 in January after its power lines were tied to deadly blazes that erupted across Northern California in 2017 and 2018, leading to an estimated $30 billion in liabilities.
