Judge OKs $58B plan to end PG&E bankruptcy after wildfires
SAN FRANCISCO, Calif. (AP) — A federal judge on Friday approved a $58 billion plan by the nation’s largest utility to end a contentious bankruptcy saga that began after Pacific Gas & Electric’s outdated equipment ignited wildfires in California that killed more than 100 people, wiped out entire towns and led the company to confess to crimes driven by its greed and neglect.
The decision by U.S. Bankruptcy Judge Dennis Montali clears the way for PG&E to pay $25.5 billion for losses from devastating fires in 2017 and 2018.
Dozens of lawsuits were settled during the 17-month bankruptcy case, with $13.5 billion earmarked for more than 80,000 people who lost family, homes, businesses and other property in the fires.
“This is a great day,” said Robert Julian, a lawyer for the bankruptcy committee representing the interests of wildfire survivors. “We are going to start getting money into the hands of the victims.”
The judge said he will officially sign his approval once PG&E attorneys submit some minor revisions expected Friday or Saturday.
PG&E still faces formidable challenges: Montali’s decision is allowing the company to emerge from its financial morass just as California heads into a summer expected to bring especially high wildfire risks.
The company plans to find a new CEO to replace Bill Johnson, who will step down June 30 after just 14 months on the job. That hiring decision will be made by an overhauled board of directors, including 11 members who were just recently appointed. PG&E also has committed to slicing up its sprawling territory into regional units to be more responsive to the different needs of the 16 million people who rely on it for power.
Financing the plan requires PG&E to nearly double its debt, saddling the...