Gov. Gavin Newsom issued a public rebuke to PG&E management on Thursday, charging that the embattled company is about to stack its board of directors with "hedge fund financiers, out-of-state executives" and others who have little knowledge of California and lack expertise in how to run a utility safely.
"With this move, PG&E would send a clear message that it is prioritizing quick profits for Wall Street over public safety and reliable and affordable energy service," Newsom said in a letter to John Simon, the utility's interim CEO.
"Time and again, PG&E has broken the public trust and its responsibilities to ratepayers, wildfire victims, and employees," Newsom wrote. "This board appears to be more of the same. It raises serious doubts about the company’s commitment to make changes needed to deliver safe, reliable and affordable power to Californians."
Newsom's comments came after a Bloomberg report that said several large firms that hold the PG&E now-shaky bonds were crafting a plan that would take the utility out of bankruptcy, set up a $14 billion fund to pay victims of fires the utility's equipment started in 2017 and 2018, provide operating capital and repay creditors.
A legislative aide to state Sen. Bill Dodd, D-Napa, said the governor had received a list of board nominees but has not shared it. Newsom's office didn't respond immediately to questions about which specific individuals the governor is concerned.
The governor's letter said new PG&E board members must "understand the imperative for change and the need to prioritize the interests of the people of California."
The board should include "a majority of Californians who have experience as regulators, safety experts and clean energy leaders. Any new board member should be resolved to change the culture of the company, understand the concerns of ratepayers and demonstrate a commitment to the fair treatment of wildfire victims and employees," the letter said.
