The California Public Utilities Commission (CPUC) has made a few proposals that should be met before it approves PG&E Corp.’s bankruptcy plan. CPUC said they’d let the power giant exit bankruptcy if the company agrees to overhaul its governance and submit to increased state oversight.
The regulators recommended the new leadership to focus more on safety and establish a process for the company to lose its license if it gets into trouble again. The company is also required to create local operating units that would “bring management closer to customers.”
“These new oversight tools and changes to PG&E’s board of directors and management are designed to ensure PG&E will emerge from bankruptcy as a fundamentally changed company,” the commission said.
PG&E has said it will need time to fully review the recommendations adding that the proposals were a positive step in the company’s effort to emerge from Chapter 11.
The company has been devising a reorganization plan that would satisfy both state officials and creditors after filing for Chapter 11 last year. The company is facing $30 billion in damages from wildfires blamed on its power lines.
The company has already settled with major claimants including fire victims. The utility company is now racing to beat the June 30th deadline to qualify for a state fire insurance fund.