A California Public Utilities Commission (CPUC) administrative law judge issued a proposed decision Monday that would approve Pacific Gas & Electric’s (PG&E) bankruptcy reorganization plan, paving the way for the utility to exit Chapter 11 bankruptcy by June 30.
A separate proposal from CPUC Commissioner Clifford Rechtschaffen, issued the same day, would also require PG&E to pay penalties of more than $1.9 billion related to Northern California wildfires that were sparked by the utility’s power lines. The penalty includes a $200 million fine to the state’s general fund, but PG&E’s obligation to pay that fine is “permanently suspended” to avoid reducing payouts for victims of the wildfires as per the filing.
The commission is set to vote on approving PG&E’s bankruptcy plan on May 21. The utility is aiming to exit bankruptcy by June 30 in order to access California’s wildfire insurance fund, created by the state legislature last year.