Executives at publicly-traded utility companies going through bankruptcy proceedings — like Pacific Gas & Electric Co. — won't get bonuses or "golden parachute compensation" under federal legislation proposed Wednesday by U.S. senator and Democratic presidential candidate Kamala Harris.
The bill comes after controversial, multi-day power shutoffs to millions of households and businesses across California in October by the beleaguered utility in a bid to reduce the risk of its equipment sparking a catastrophic wildfire.
The San Francisco-based company's equipment has been found responsible for starting the deadliest and most destructive wildfire in California history — last November's Camp Fire in Butte County, which killed 85 people and destroyed nearly 14,000 homes. The potential legal liability for that blaze and others prompted the company to file for Chapter 11 bankruptcy protection in January.
In late August, U.S. Bankruptcy Court Judge Dennis Montali rejected a PG&E proposal to pay its top executives $11 million in bonuses, saying the utility had not shown how the executives' work was tied to safety goals, the San Francisco Chronicle reported.
“Years of corporate negligence and misplaced priorities by energy utilities like PG&E have caused devastating fires and costly blackouts — which is exactly what happens when publicly traded utilities put corporate profits and stock prices above their customers and public safety,” Harris said in a statement Wednesday. "These companies should serve the people, not plunge them into darkness or cause a massive wildfire — and they shouldn’t cash in after years of systemic failures."
