On Tuesday, Gov. Gavin Newsom signed SB 350, which protects California by giving the state the authority to hold Pacific Gas and Electric Co. accountable if the company fails to adhere to public safety policies, and to put safety, reliability and its customers at the center of its business model.
SB 350, by Sen. Jerry Hill, provides California with a failsafe if PG&E does not exit bankruptcy, or if the utility falls short of achieving the reforms in practices and operations that have been required by law.
SB 350 builds on the framework set up by AB 1054, which was signed in July 2019, as well as on requirements set in motion by the California Public Utilities Commission, the bankruptcy court and most importantly, by the governor’s push for fundamental changes to transform PG&E into a utility that is reliable and accountable to its customers and to all Californians.
“No more business as usual for PG&E,” said Gov. Newsom. “As we head into wildfire season amid a pandemic, Californians need to have confidence that their utility is focused on customer safety – preventing wildfire sparks and making critical safety upgrades. SB 350 marks a critical step in the transformation of PG&E into a utility that is accountable to those it serves – the people of California. I would like to recognize and thank the Legislature for taking action on this important legislation.”
“California must have a backstop in place to protect ratepayers and our state if PG&E does not meet the strict requirements for emerging from bankruptcy and for becoming a safe, reliable and sustainable energy provider,” said Sen. Hill, D-San Mateo and Santa Clara Counties.
“My thanks go to Governor Newsom and to Senators Bill Dodd and Mike McGuire and Assemblymember Chris Holden, the coauthors of SB 350, for sharing the vision of a transformed PG&E,” said Sen. Hill. “I also thank the governor and my colleagues in the Legislature for supporting measures to safeguard California and PG&E customers. SB 350 isn’t a bill we want, but it is a bill we need.”
SB 350 authorizes the creation of a new entity, Golden State Energy, as a nonprofit public benefit corporation, which would step in and take over if PG&E fails to emerge from bankruptcy or if the utility does not transform as required by Assembly Bill 1054, the legislation by Assemblymember Holden that Governor Newsom signed into law in 2019.
The governor signed SB 350 one day before PG&E is expected to conclude the bankruptcy case it filed in January 2019.
The state won key victories in the company’s reorganization plan as a result of its intervention. These included sweeping governance and operational reforms, including a newly constituted board of directors, and billions of additional benefits to ratepayers, victims and the people of California.
The state’s involvement also ensured that the company emerged from bankruptcy in a position to make massive upgrades necessary to deliver safe, reliable, clean electricity, and to swiftly compensate victims.
The California Public Utilities Commission approved PG&E’s bankruptcy plan on May 28 in a decision that placed enforceable requirements on PG&E to meet the mandates of AB 1054.
The Senate passed SB 350 with a 30-8 vote on Monday. Earlier this month, the Assembly voted 57-17 to pass the legislation.
The new law takes effect Jan. 1, 2021.
Governor signs bill giving state protection that PG&E will be transformed into a safer utility
- LAKE COUNTY NEWS REPORTS
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