BY Fraser Tennant
In a move that will allow it to exit bankruptcy as a “reimagined utility” and pay more than $25bn to wildfire victims, PG&E Corporation, the parent company of Pacific Gas and Electric Company, has filed an updated Chapter 11 plan of reorganisation.
According to the filing, PG&E is on track to have its plan confirmed by 30 June 2020, the deadline for participating in California’s new go-forward wildfire fund, a settlement for several wildfires in Northern California which killed dozens of people in 2017.
Upon emergence from Chapter 11, PG&E is expected to be a financially stable company positioned to continue prioritising safe operations and customer focus, while meeting California's energy needs and clean energy goals in a changed climate.
The key updated elements of the plan include: (i) regionalising the company's operations and its infrastructure to enhance the company’s focus on local communities and customers; (ii) further strengthening PG&E’s corporate governance by appointing an independent safety adviser: (iii) establishing a newly expanded role of chief risk officer (CRO) who will report directly to the PG&E chief executive and have oversight of risks associated with PG&E’s operations; (iv) paying value in excess of $25bn to wildfire victims through the settlements reached with individual victims, subrogation claimants and public entities; and (v) emerging with a financing structure that protects customer rates and positions the company for long-term success.
"Under our Plan, the company will emerge from Chapter 11 as a reimagined utility with an enhanced safety structure, improved operations, and a board and management team focused on providing the safe, reliable, and clean energy our customers expect and deserve,” said Bill Johnson, chief executive and president of PG&E Corporation. “Our 23,000 PG&E employees are striving every day to deliver that service and to build the utility of the future.”
Headquartered in San Francisco, Pacific Gas and Electric Company serves 16 million Californians across a 70,000-square-mile service area in Northern and Central California.
Mr Johnson concluded: “We are committed to emerge from Chapter 11 in a manner that allows us to help lead California toward the future, meeting the highest safety, governance and operational standards.”