California regulators on Thursday approved a plan that would allow the state’s biggest utility, Pacific Gas & Electric, to emerge from the bankruptcy case it filed last year, clearing the last major hurdle the company faced.
The California Public Utilities Commission, whose approval is needed when utilities’ bankruptcy reorganization plans will require ratepayer funds, voted 5 to 0 in favor of PG&E’s proposal. The bankruptcy court’s approval is also required to wrap up the case.
Regulators gave PG&E until June 30 to exit bankruptcy in order to take part in a $20 billion wildfire fund to help cover costs of future fires. Gov. Gavin Newsom also demanded that PG&E provide for a state takeover of the company if it failed to meet the obligations of its bankruptcy plan. Legislation to allow for such a takeover is working its way through the California Assembly.