Pacific Gas & Electric reached an agreement Friday with Gov. Gavin Newsom of California in which it pledged billions of dollars to help wildfire victims, improve safety and make other changes, resolving the biggest obstacles to the company’s plan to come out of bankruptcy.
As part of the deal, PG&E, which filed bankruptcy last year after amassing tens of billions of dollars in debt related to wildfires caused by its equipment, will not pay dividends to shareholders for three years and restructure some of it debt. The agreement will allow the utility to exit bankruptcy by June 30, a state mandated deadline for it to participate in a fund that will help utilities pay claims from future wildfires.
A federal judge still needs to approve the company’s bankruptcy plan, but the agreement with Governor Newsom makes the approval much more likely.
This is a developing story. Check back for updates.