Sen. Hill On PG&E: California 'Must Have A Backstop In Place'

On Tuesday, California Gov. Gavin Newsom signed Senate Bill 350, creating a backup plan for California in case utility provider PG&E fails to exit bankruptcy on Wednesday or enact required reforms.

The bill was introduced by Senator Jerry Hill (D-San Mateo and Santa Clara Counties). It outlines governance and reforms for PG&E and gives the state authority to create a utility provider named Golden State Energy as a nonprofit public benefit corporation should PG&E fall short.

In a release Wednesday, Hill praised Newsom's signing of the bill.

“California must have a backstop in place to protect ratepayers and our state if PG&E does not meet the strict requirements for emerging from bankruptcy and for becoming a safe, reliable and sustainable energy provider,” Hill said in a statement.

According to the release, Hill has worked for almost a decade to reform the utility provider and hold it accountable for a 2010 gas pipeline rupture that led to an explosion, killing eight, injuring 58 and destroying a neighborhood in San Bruno.

“My thanks go to Governor Newsom and to Senators Bill Dodd and Mike McGuire and Assemblymember Chris Holden, the coauthors of SB 350, for sharing the vision of a transformed PG&E,” Hill said in a statement. “I also thank the Governor and my colleagues in the Legislature for supporting measures to safeguard California and PG&E customers. SB 350 isn’t a bill we want, but it is a bill we need.”

The new law will take effect January 1, 2021.

Read More: PG&E Faces An Uncertain Future — PG&E is about to emerge from bankruptcy. If it cannot operate safely and profitably, a state takeover may be the option.

In a release Tuesday, Newsom thanked the California legislation for passing the bill and creating a backup plan.

“No more business as usual for PG&E. As we head into wildfire season amid a pandemic, Californians need to have confidence that their utility is focused on customer safety – preventing wildfire sparks and making critical safety upgrades,” Newsom said in a statement. “SB 350 marks a critical step in the transformation of PG&E into a utility that is accountable to those it serves – the people of California. I would like to recognize and thank the Legislature for taking action on this important legislation.”

As PG&E exits bankruptcy Wednesday, Bill Smith will take over the reigns from Bill Johnson, the utility's former chief executive, the San Francisco Chronicle reports.

According to the report, PG&E owes billions to victims of wildfires caused by power lines. It's also tasked with ensuring safety and preventing power outages amid the dangerous fire season that lies ahead this year.