The California Public Utilities Commission, whose approval is needed when utilities’ bankruptcy reorganization plans will require ratepayer funds, voted 5 to 0 in favor of PG&E’s proposal. The bankruptcy court’s approval is also required to wrap up the case.
PG&E sought bankruptcy protection in January 2019 after it amassed $30 billion in liabilities related to wildfires caused by its equipment in recent years. The most devastating blaze, the 2018 Camp Fire, left 85 people dead and destroyed the town of Paradise.
Regulators gave PG&E until June 30 to exit bankruptcy in order to take part in a $20 billion wildfire fund to help cover costs of future fires. Gov. Gavin Newsom also demanded that PG&E provide for a state takeover of the company if it failed to meet the obligations of its bankruptcy plan. Legislation to allow for such a takeover is working its way through the California Assembly.