Governor Newsom Reassures Residents Power Will Stay on After PG&E Files Bankrupcy

pg&e helicopter

Even though PG&E has filed for bankruptcy, power should continue to flow to customers, says California Governor Gavin Newsom. [Photo from PG&E]

Statement from Governor Gavin Newsom:

California Governor Gavin Newsom issued the following statement after the Pacific Gas and Electric Company (PG&E) announced its intention to file for bankruptcy:

“PG&E provides gas and electric service to 16 million Californians. From the moment I was elected, I have been closely monitoring the impact of PG&E’s existing and potential future liability for the deadly wildfires on the victims of the fires and the consumers who rely on PG&E for their electric and gas service.

“When I took office one week ago today, I immediately instructed my team to meet with the California Public Utilities Commission, CAISO, PG&E, and labor unions representing the workers who work for PG&E. My staff and I have been in constant contact throughout the week and over the weekend with these stakeholders and regulators. Everyone’s immediate focus is, rightfully, on ensuring Californians have continuous, reliable and safe electric and gas service.

“While PG&E announced its intent to file bankruptcy today, the company should continue to honor promises made to energy suppliers and to our community. Throughout the months ahead, I will be working with the Legislature and all stakeholders on a solution that ensures consumers have access to safe, affordable and reliable service, fire victims are treated fairly, and California can continue to make progress toward our climate goals.”

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110 comments

  • One way or another, the PGE customers will be paying for everything. Our rates are already too much, I’m guessing we will pay more now.

    • Seriously my bill is 4x the normal amount it is. They’re trying to recoup losses through the customers

    • Pretty-boy leftist elite

      “Whether You Like It or Not. As governor I am going to continue the policy of my illegitimate Jerry daddy and guarantee that sodomy by union and special utility district remains legal. It’s just going to get bigger and hurt a little more.”

    • PG&E has the State over a barrel right now. Here’s how I see this playing out, as I’ve seen it happen with the last 2001 PG&E bankruptcy filing.

      Once PG&E files bankruptcy, they will no longer have the credit worthiness to purchase electricity OR natural gas on the open market. No suppliers will sell to them for fear of not getting paid. The State of California will then have to step in and buy electricity and natural gas on behalf of PG&E (or risk rotating blackouts) until such time PG&E emerges from bankruptcy. Rotating blackouts would not be good for the State’s economy.

      Guess what happens next….. the State of California will pass those energy cost on to the customers as a Dept of Water Resources (DWR) line item charge on subsequent PG&E bills. This is the billing mechanism the State uses, to collect charges from PG&E customers. The State isn’t as charitable as you think. Such charges still exist today, as a result of the last 2001 bankruptcy…look them up on your current PG&E electric bill charges as the “DWR” line item.

      And once PG&E is in bankruptcy protection, any wildfire claims go to the bottom of the pile; as a Bankruptcy Judge will focus first on making creditors, not lawsuit claimants, whole. So, who picks up the tab for the estimated over $30 billion in wildfires claims? That becomes another unknown variable as a result of PG&E’s bankruptcy. My guess is that it defaults to the Insurance Companies, since PG&E’s “deep pockets” are now gone.

      Also, “green energy” contracts become in question; because a Bankruptcy Judge might see that electricity generated from coal, from Montana, is a cheaper solution than demonstratively more expensive green energy sources. Again, it’s what ever the Bankruptcy Judge decides which is the cheapest way to recover. This will truly hurt Newsom’s green energy mandates for California, if not totally jeopardize them.

      Newsom’s term is already in trouble, before he even started….this is why he fears a PG&E bankruptcy under his watch.

      • Thank you for your thoughtful and insightful post. I wonder who the insurance under writers are & why would PG&e agree to those terms? We all hate to read the fine print, but that’s why big companies retain lawyers. Who are their lawyers? Red tape always sounds so foreign to me.

        • “Red tape always sounds so foreign to me.”

          That’s because it is. It has nothing to do with the land jurisdiction.

          The State Bar is an unconstitutional Monopoly. AN UNLAWFUL & CRIMINAL ENTERPRISE. It violates Article 2, Section 1, Separation of Powers clause of the Constitution. There is NO POWER OR AUTHORITY for joining of Legislative, Judicial, or Executive within a state, as the BAR unlawfully encompasses and playacts the parts. BAR members have invaded all branches of governmental services corporations and are hell bent to control what little remains of de jure government as agents of a foreign entity trespassing on American soil.

    • correct pge customers are still paying 18 something a month from pges last chapter 11 back in 2000 or 2001. this is merely a ploy to get rate payers to pay for pges wrong doing and to short change fire victims.

    • I Zoomed in on the chopper…. Did it say Bankruptcy on the side?? Yes it did, up on top. Unfortunate. It will be visiting most all businesses in 2019, with a gov in slacks smile. Time for Communism.

    • You know that is true,! it has happened before, the Democratic party in California has always let big business “screw” the taxes payers of California.

  • BANK-RUPTCY??????

    What a humongous pile.

    Tesla was over a hundred years ago. What’s wrong with this picture?

  • And what exactly are the climate goals? Maybe we can start harvesting unicorn farts and distribute them with fairy wings. The truth is ,insurance companies don’t want to pay out for the fires so they sue P.G.E., P.G.E. goes broke, files for bankruptcy,all the california ratepayers pay for it in higher rates.

    • expanding insignificance

      Yes. Climate goals are a way to double your rates to cover for bureaucratic mistakes without having to admit the real reason for taxing you more. That’s what the whole meme was meant for in the first place.
      The firemen want these fires. I have personally watched news helicopters circle a new fire for an hour before firemen showed up here in southern california. Think of all the overtime and hazard pay and how that affects pensions.. Now think of what that costs in the long run. Do you think the union is willing to see that money get cut? Compare those costs to just having a dozen super scoopers in the air whenever Santa Ana winds are forecast. Thinks of the lives, pets and homes saved.

    • Dear Sir,
      As retained legal council for The UMFCFNSU49 (United Magical Forest Creatures Fairies Nymphs Sprites and Unicorns Number 49) I am hereby notifying you that any discussion and or comment regarding my clients should be centered around the current CBA. Your flippant comments can be hurtful to my clients position so we ask that you cease and desist lest you be subject of legal remedy or a fairy curse against you and seven generations of your offspring…
      Regards, Gandalf

      • Re-tained “LEGAL” council – the arm pit of America.

      • Do not forget the Picts.

      • As a member of bird brained united bless you. 🦉🦅

      • As someone who lives in a fireprone area and an evacuee from the Mendocino Complex, I want more proof than merely your eyewitness account of news helicopters circling fires, waiting for the firefighters to arrive for an hour or more. Have you ever thought that it takes some time to muster personnel and gear for fighting what is clearly an extremely dangerous fire, especially in a remote area? Do you actually know anything about firefighting? Have you, your loved ones, and/or your homes ever been seriously threatened by a wildfire? Or are you just grumpy about paying taxes? Well, so are we all. Lots of corruption in government and elsewhere; we all agree on that, too. But it’s a big leap from this generalized statement and what you say you saw to thinking this is all a plot on the part of unions and people concerned about climate change.

  • Know when to fold ’em comes to mind.

  • The CPUC should immediately take over the vast network of power distribution and begin the transformation into a Venezuelan utopia.

  • Another power company that maintains its transmission lines will take over. PG&E should not be bailed out like the Savings Banks. The rate payers should not be saddled with the costs of PG&E’s lack of due diligence.

  • ANY way to get out from under the legal impact of the Paradise/Camp fire, I suppose.
    If they commit corporate suicide then the People In Charge of the show won’t have to be Responsible for a fire that ate an entire town in less than six hours, killing people who couldn’t move fast enough…

  • Gruesome Newsome, California’s new Stalin, should immediately replace all PGE workers with much more competent illegal aliens. The subsequent gas explosions and electrical fires can be cleaned up by migrant caravan utility experts. Open borders is the cure for everything.

  • The last PG&E bankruptcy ended with the executives responsible being rewarded with retention bonuses. What will their incompetence be rewarded with this time?

  • PG and E should reorganized as a cooperative power company. Residents of Curry County (Brookings) receive their power from Coos Curry Electric Cooperative which is owned by those who use their services. All members are entitled to a vote for the Board of Directors and receive a refund at the end of the fiscal year if revenue exceeds expenses.

  • Corprotocracy (sp?) is defining the way governments manipulate their people . . . in creating a Scientific DictatorShip aka Technocracy, as it applies state-of-the-art technology to manipulate its citizens.

    Barring a major awakening, any control of public affairs by “The People” is toast.

  • I think it is time for PG&E to pack their crap and get out of California. Governor Newsom should be looking for a replacement company to take over. Everything PG&E owns should be sold and the money given to all the fire victims who are in real need. I do not want my rates to go any higher so they can cover their butts with cash.

    • “Power cedes nothing without a demand. It never has and it never will.” Fred Douglass

    • This from another article, regardingm the Inverse Condemnation doctrine, which is effect in only 2 states, California being one of them:

      “Under that legal doctrine, California utilities can be held liable for economic damages from wildfires sparked by their equipment EVEN if they followed all applicable safety rules. PG&E and the other utilities argued that the system makes them the insurers of last resort in a state whose fire season, once confined to a few dry summer months, now seems to extend year-round.”

      What kind of business model is that? Who is ever going to take over a grid, and assume those financial liabilities, now and into the future? No one, as long as Inverse Condemnation is in place.

      With PG&E filing for bankruptcy protection, Newsom’s California carbon free goal is now circling the drain too.

  • The real story here is the nexus between Geisha Williams, the so called Public Utilities Com. and big green. Because California chose to curtail energy production and buy power from B.C. the price of energy has soared. To offset the increase one of Geisha’s brilliant tactics was to cut maintenance costs including brush clearing and replacing outdated equipment, and the P.U.C. let her get away with it. They allowed her to lower Tier usage to the point you end up paying up to 42 cents a KWH (my sisters pays 7 cents fixed in another western state) for residential use. Next up they’ll lower the usage bar and rates will soar once again. Tier usage is how they raise rates without saying they’re raising rates. Geisha’s salary has, of course, been unaffected.

  • My bill is already too high.

  • California missed a oppurtunity to elect a common sense goveenor. John cox is what california needed. Now we get another liberal whack job.

    • Fuck yes.
      On another note, sub contractors for pg&e are meticulously thinning around their interconnect lines up wind from us as we speak, so there is that. I’ve never seen such badass ATV rigs on the trailers they are hauling around.

  • Pull their corporate charter and de-regulate!!!!
    Lets have some small companies and actual competition in the market, so consumers can choose.
    To you young folks it used to be like that in Ca til reagan changed it. Look it up, its interesting&not too long ago!

  • It’s funny all this is on the back of PG & E. What about our Dept of Forestry? We have left dead timber lay for years on our forest floor, in 10 years of drought conditions. What exactly did we all expect to happen look at all of the forest fires we’ve had in the last 2 years. We have had some rain but certainly not enough. Even at that then the timber remained laying there with no cleanup and eventually exactly what happened was going to happen and PG&E is not at fault for that. Sure we all want power we love our homes to be bright and we love our homes to be warm and all the convenience is it affords us but and we want our bills to be low but we need to stop and think about other things we want we want to protect our animals and we want all these conveniences but what are the price what are the prices were paying for that and then we want to Levy a big lawsuit against a company that’s affording all these luxuries that we have come to look to as a right I think we all need to step back and evaluate our lives on what’s important as a society what’s a real right what’s a necessity and probably most important is what are we teaching our children I already know this is going to be hugely controversial but I think its worth food for thought take it for what it’s worth mostly for children

    • There’s nothing left once the innocence is taken from the children.

      Celebrating an 11 y.o boy on Good Morning America. The Great Satan Worship:
      https://www.youtube.com/watch?v=JxdvOLdG_34 8:11 November 2, 2018.

      “If anyone causes one of these little ones–those who believe in me–to stumble, it would be better for them to have a large millstone hung around their neck and to be drowned in the depths of the sea.” [Matthew 18:6]

      They will pay. Make no mistake about it.

      • 13 of the current 40 comments are from HumCo.

        It took him only 12 comments to reach Satan Worship.

        Anyone else sick of this?

        • If you are sick of their posts, why read them?
          My mouse has a really cool scroll wheel that allows me to bypass such dribble…

          • Henchman Of ‘Justice in Training’ – don’t quit your day job.

            Your type of comment is what i get emails about from the other two Emerald counties, complaining about the “riff raff” little girls in here.

            Few but annoying.

            • Looks like someone put a little too much “paranoia juice” in their morning cup ‘o joe. Central, I wasn’t talking to you, nor was I complaining about your excessive posting. I am not looking to take your annoying-poster day job, either. You are far superior at it than I could ever hope to be.

              I’m not even going out on a limb here when I say that the likelihood for you wanting to reply to this is a solid 100%.

          • “What they do?” (Boom Boom!)

            “They smile in your face, all the time they wanna take your place. Dem backstabbers…Backstabbers!”

          • His blatant disinformation is similar to how Trump got elected.

            Bullshit that people swallow.

            Kym allows him to comment endlessly with lies and insults to trauma victims.

            I feel it’s important to address every-once-in-a-while.

            Silence isn’t always the best answer.

    • Concerned Mom- Thanks for saying this so kindly. I agree. Not trying to defend PG&E! But we have pushed for the creation of this problem. We want to live in trees but we want all electrical conveniences- that means stringing high-voltage wires through dry timberland. Even the climate change and increased fire danger is partly a result of our choices. People like to blame and don’t like to look at themselves. Society has developed where we take as normal some dubious decisions and desires. I live in the forest and I use a generator only on some days. Mostly solar. Stringing high- voltage lines along my ridge? With our weather?! No thanks.

      • ” Society has developed where we take as normal some dubious decisions and desires. ”

        “It is No Measure of Health to Be Well Adjusted to a Profoundly Sick Society”

        https://medium.com/@helena.hi/it-is-no-measure-of-health-to-be-well-adjusted-to-a-profoundly-sick-society-29a56e5320cf

        • Haha! I used to feel somewhat that way (medium article) until learning more about the Paris Peace Treaties, City of London and the Vatican. (thanks to those who made me search for reasons why orange people terrify some people. Prince William of Orange who fought King Phillip… long story short, ALL roads lead to ROME and it’s one world order aka dictatorship). Replace the word fascist with corporate monarchy or whatever better suits, and we have a winner there.

          • ~all roads lead to the Vati-Con -which has nothing to do with Rome.

            • In 306, Constantine became emperor of Rome.
              What did Constantine and the then Pope create in order to hijack for the next 1,700 years?
              Who created the City of London?
              Where is the City of London bank
              Who created the House of Lloyds?
              Who created the Tavistock Method of Operation?
              Who utilizes the Tavistock Method? Why?
              What are the results of the Method?

              Luke 23:34
              “Father, forgive them, for they know not what they do.”
              …applies to the Tavistocked today just as much as it did back then even though they had no name for it then. It’s much more perverse today though, due to faster communications and constant barrages of crisis articles to enhance the setting for the emotionally manipulative mind.

              • ~well, we’re witnessing the ‘results’, ala Technocracy gone amuk.

                The City of London has nothing to do with England. Just as the District of Criminals has nothing to do with America. They each have their own flag. I think of them as the axis of evil. Military, $, and religion.

                Good to know ol Virginia Bass made a trip back – on her own pay-yourself-a-raise vote (our dime).

  • Wonder how much CALPERS has invested with PG&E.

    That is going to be the real story.

    • Whether they still have this amount, I don’t know. But the 2016-17 Calpers report shows them to be heavily invested. https://www.calpers.ca.gov/docs/forms-publications/annual-investment-report-2017.pdf Check page 111

    • In a bankruptcy, aren’t the creditors the ones who are paid back first?

      • ~yeah, man! That be you and me and we and us.

        • Dream on CH. We’re the consumers, not the investors or financial bailers.
          The cost is passed on to us, and the taxes are collected from us, but we’re not officially considered investors or financial bailers.

          • Officially considered?

            “We don’t need no stinkin badtches”. The documents are filed on who’s who in the zoo.

            • The consumers pay the creditors/investors back (raised rates and taxes), not the bankrupting company that gets bailed out. (monopoly, monarchy, etc).
              In the capitalist world, the bankrupting company would fold and the market opens up for new competitors. Competitors competing for consumer happiness, keeps the prices affordable.

              I don’t understand your quote atm. Do you have another one that I might be able to grasp?

              • ~don’t slip back into 3-D on me.

                Leoni’s great contribution is to point out to even our staunchest laissez-faire theorists an alternative to the tyranny of legislation. Rather than accept either administrative law or legislation, Leoni calls for a return to the ancient traditions and principles of “judge-made law” as a method of limiting the State and insuring liberty. In the Roman private law, in the Continental Civil Codes, in the Anglo-Saxon common law, “law” did not mean what we think today: endless enactments by a legislature or executive. “Law” was not enacted but found or discovered; it was a body of customary rules that had, like languages or fashions, grown up spontaneously and purely voluntarily among the people. These spontaneous rules constituted “the law”; and it was the works of experts in the law—old men of the tribe—to determine what the law was and how the law would apply to the numerous cases in dispute that perpetually arise.

                I know you grasp it.

                • “Thinking in ‘3D’ means being Dramatically and Demonstrably Different.”
                  From what? I don’t hold any concrete ideals, except for our Constitution. That’s a solid compact that I admire and respect. Central govt is delegated by us all the external objects such as war, peace, commerce and negotiations. The states reserved the powers to rule over all their own internal objects such as roads, utilities, penalties within reason. Heck, even education was left to the individual, not the state or the central.
                  Most of the 1st 13 states were originally settled by various freedom of religion sectors. The importance of freedom of religion is echoed by it being in the 1st amendment along with freedom of speech and assembling etc.
                  The Revolutionary war was between the Brits and the Brits-who-no-longer-wished-to-be-controlled-by-one-world-religion-or-beliefs. Which is exactly what the King and the then Pope were corroborated in achieving.
                  Who helped fund the Revolutionary war? Where did they get their money from in order to help? Who was funding both sides? Who is still to this day trying to achieve the same goals? Who had the goal first? It wasn’t the last King who started it. Who was the first recorded fake Pope? Is this a battle that’s been fought since before the 1600’s? Who was Nimrod? Who controls the banks? Who controls the bar association? Who controls the media and all forms of communications? Who controls the education, health and … come on man, THINK!
                  It goes way deeper and broader than you’re willing to consider. Stop resting on your laurels. It’s nice to feel content in knowledge gained to date, but the key note take away is ‘to date’.
                  You should already have a feel for half this summary, what with your passion for the old time governing.
                  Remember those times your head said ‘wait, what?’. Go go go, dive into it, don’t let talking heads steer you away from finding your own aha’s.
                  That goes for me too, which is why I’m putting you straight. I don’t follow your same path, but I am curious enough to dig deeper where it’s interesting. I expect the same in return. I admire and respect those who think outside of a n y box.

                  Apologies for ranting. We both need it from each other, is my point. Maybe I’m too content too. (everybody needs to rest up before digging deeper and wider, I know this, and I do this too, but I expect more from others. My bad.)

                • Thank you shak. I appreciate your insight, and, out-sight. Certainly no apologies are needed from you.

                  I missed out on today’s parade of self-interested fools. No wonder ‘They’ want the useless eaters dead or enslaved. “Half of the harm done in this world today is due to people who want to feel important . . .: T.S. Eliot

                  Real eyes
                  Realize
                  Real lies

                • Thank you CH for your grace and your enlightenments too.

                  Yes!
                  Real eyes
                  Realize
                  Real lies.

                • ~back up here shak, i was speaking of 5th dimension, as opposed to the appearance of the 3rd.

                  “You cannot buy the revolution. You cannot make the revolution. It is in your spirit, or it is nowhere”. –Ursula K. Le Guin, The Dispossessed.

  • Let the state run it. Deprivatize the electrical grid.

    • hey we agree on one thing! btw all infrastructure should be owned by the government (or better ‘the people’)

  • Gray Davis used treasury monies to bailout PGE April 2004 in the amount of 10.2 billion dollars. This was contributed to him being ousted out of office.

  • Sacramento SMUD is 13 cents per kWh, flat rate, is a cooperative, basically. If the state doesn’t take pge and turn it into a cooperative or state run not for profit Gavin, is going to have a short run. PGE, SoCal and SDG, are the 3 most expensive utilities in the lower 48. And for no reason, except the CPUC. We have a golden opportunity to take back OUR broken stolen utility and make it work for us. This is the 2nd bankruptcy in 15 years, obviously this business model doesn’t work. It’s not fixable, needs to be replaced.
    Call your state rep and demand we want OUR utility back.
    No bailout.
    Jim Wood. 916-319-2002
    Mike McGuire 916 651-4002

  • Hey PG&E….. 🖕🤨

  • Paradise Gone & Engulfed

    I came up with that myself

  • No bail out, public ownership now!

  • Elric of Melniboné

    Why can’t you understand what I’m trying to tell you?

    You won’t understand what I’m saying because you’re just not listening.

    You are simply misinformed, and you’re not emotionally invested in it.

    Control and security is very important to me.

    I’m not bored, but I do feel unique and that I stand apart from others.

    People say that I am not very dependable, kind, or cooperative.

    Some people even say that I am manipulative and talk at or over people without listening.

    Sometimes I feel alienated and socially isolated.

    But I like Kym’s blog, because I find other people here who share the same beliefs that I hold.

    That’s why I keep coming back.

    I really think I need a job.

    And a friend.

  • Bankruptcy is why Capitalism sucks. But peabrain Conservatives, the REAL snowflakes, can’t handle ANYTHING they don’t understand, which is a lot. After all: simple is as simple does!

    • …the policies of individualism and of capitalism, its application to economic matters, do not need any apologists or propagandists. The achievements speak for themselves. — Ludwig von Mises

  • After last bankruptcy, I addressed my PG&E payment checks to “Piggy Greedy Executives” for a couple of years. They never objected.

  • Brought to you by the same voters with the mind set that gave us plastic bags, unsecured national border, Two terms of Moon Beam, Bullet Trains, etc.. You have failed to manage the fifth largest economy in the world miserably. What is next will the masses revolt or is paradise truly lost????

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