CNBC asked me and Governor Newsom about PG&E’s future.
PG&E hopes to exit bankruptcy by June 30. It’s plan calls for $13.5 billion to be set aside for its victims to make claims against. The trouble is, if PG&E can’t get its planned approved by June 30, it will lose access to a $21 billion fund that will help protect its financial condition in the event of future wildfires. If it can’t get access to the fund, its lenders and others who are providing support for the plan will back out of the deal.
The Governor dislikes PG&E’s plan and is talking about having the state take over PG&E. If PG&E’s exit plan falls apart, how will victims be paid for their losses?