California Could Take Over PG&E Under A Proposed Bill. But Could The Plan Work? – February 2020
As Pacific Gas & Electric submits a Chapter 11 Plan of Reorganization, Capital Public Radio outlines the potential for California to take control of PG&E. Faculty Director Severin Borenstein questions whether PG&E can get out of bankruptcy and describes the possibilities if the state intervenes.
“For this idea to work a lot has to be ironed out, says Severin Borenstein, Faculty Director of the Energy Institute Berkeley Haas and Professor of Economic Analysis and Policy. Borenstein questions whether PG&E can get out of bankruptcy — where creditors usually have priority — and whether funds can be included from the state’s wildfire insurance fund. ‘I think it’s a long shot at this point,’ said Borenstein. ‘The way this could happen is if the governor says we are not happy with that plan and we are going to decide.’ Borenstein says there will be a wide set of possibilities if the governor disapproves of PG&E’s plan, including a state takeover.”