Los Angeles (AFP)
California state governor Gavin Newsom has rejected a restructuring plan presented by energy giant Pacific Gas and Electric (PG&E), which has declared bankruptcy in the face of billions of dollars in compensation claimed by victims of forest fires.
This plan "is terribly inferior" to the expectations of the State of California, which requires the company to reform itself in depth and to acquire a "capital structure allowing it to make the essential investments for safety, "Newson wrote in a letter to PG&E on Friday.
"The priority of the state remains to meet the needs of Californians, including the fair treatment of victims, and not the financial interests of Wall Street," added the governor.
PG&E filed for bankruptcy protection in January, arguing that it faced more than $ 30 billion in fire damage claims.
Defective PG&E power lines were implicated last year in a fire in northern California that left 86 dead, the deadliest in state history. Outdated facilities, wooden utility poles and cleared land around power lines have been singled out, and the energy group has been accused of putting profits before security.
PG&E has also been prosecuted in three other fire cases since 2015, including one that devastated the state wine region and killed more than 40 people two years ago.
The governor gave PG&E until Tuesday to send it a revised version of its restructuring plan. The group has until June 30, 2020 to exit bankruptcy, which would allow it to access a victim compensation fund.
The group announced in early December that it would pay $ 13.5 billion to settle the lawsuits against it. This settlement agreement must still be approved by a court before being enforced.
© 2019 AFP