Governor voices sharp criticism over PG&E bankruptcy

SACRAMENTO — Speaking on the one year anniversary of the Pacific Gas & Electric Co. announcing its current bankruptcy, Gov. Gavin Newsom had a message: “PG&E? That company no longer exists.”

If that wasn’t enough to put the utility on notice, Newsom offered plenty more during his hour-plus appearance at an event put on by the Public Policy Institute of California. His comments included an assertion that the company “exists only on paper” and repeated a threat Wednesday to “take it over, if necessary.”

The governor promised there would be a good deal of action on the topic in Sacramento before the company is set to emerge from bankruptcy on June 30.

“I have no interest in the existing management, in the existing board,” he said. “It’s a culture that needs to change.”

The company quickly released a statement following Newsom’s remarks.

“Throughout the Chapter 11 process, our focus has remained on getting victims paid and continuing to deliver safe and reliable electric and gas service and implementing needed changes across our business to improve our operations for the long term,” it stated in part. The statement went on to note payments the company has already made to fire victims and the steps taken to reduce the costs to ratepayers.

The state’s deadliest blaze, the Camp Fire, was ignited by a PG&E line on Nov. 8, 2018, two days after Newsom posted an overwhelming general election victory to the job he long coveted. On Wednesday, he said the fires offered an opportunity to pursue long-needed changes.

“I thought of it as a burden, but it’s turned out to be a godsend,” Newsom said.

He went on to discuss how his administration has been pursuing a comprehensive strategy for addressing climate change not just through reforming PG&E but with changes in state government, noting examples like moving towards a mostly-electric vehicle fleet and getting the state’s pensions funds to invest with climate risks in mind.

The state is better prepared than ever for the next fire season, he said. For instance, he noted 34 of the 35 highest need fire mitigation projects have been completed, and the state is buying seven new air C-130 tankers. Newsom also praised the mutual firefighting aid pacts California has not only with other Western states but with other countries, including Australia.

This led an audience member to ask if the devastating fires in Australia had changed his thinking about fires and climate risk.

“They haven’t changed my thinking at all,” Newsom replied, noting the record fires in California between 2015 and 2018. “They’ve reinforced it.”

His comment came in the middle of an eventful few days in PG&E’s bankruptcy. U.S. District Judge William H. Alsup has approved a settlement with some victims of the 2017 Tubbs Fire and warned the company he might nix employee pay bonuses. In re: PG&E Corp., 19-30088 (N.D. Cal., filed Jan. 31, 2019).

Newsom was also called upon to address the state’s frequent battles with President Donald Trump. Progressives and environmental groups have pushed him to be even more aggressive, he said, but he added it was the state’s goal to avoid litigation whenever possible.

“I want everyone to calm down,” he said. “I don’t need to be told to be tough on the Trump administration.”

But the governor also could not resist a dig at Trump, citing comments the president made about reducing fire risks in the state.

“He called me personally about raking [the forests],” Newsom said. “I thought it was a prank call.”