California Utility Scrambles To Renegotiate Wildfire Settlement Rejected By Governor

California Gov. Gavin Newsom’s opposition to Pacific Gas & Electric’s restructuring plan just a week after it struck a $13.5 billion settlement with fire victims is forcing the nation’s largest utility to go back to the negotiating table and come up with a solution fairly quickly.

The San Francisco-based company needs to pull a deal off to meet a June 30 deadline to emerge from bankruptcy protection and regain its financial footing.

Missing the deadline would prevent PG&E from being able to draw from a special fund created by the Democratic governor and state lawmakers to help insulate California utilities from future fires that many people believe are bound to erupt as a changing climate continues to create hazardous conditions.

Utilities are at risk because their aging electric transmission lines are expected to take years to upgrade.

On Thursday, PG&E filed an amended reorganization plan with the U.S. Bankruptcy Court after reaching a settlement on Dec. 6 with thousands of people who lost homes, businesses and family members in a series of devastating fires.