Signed into law by Governor Newsom on Tuesday, Senate Bill 350 is another step in the transformation of Pacific Gas & Electric (PG&E) as the utility’s bankruptcy proceedings reach conclusion. In a press release earlier this week, Governor Newsom lauds this bill, authored by Senator Jerry Hill (D-San Mateo), as one which “protects California by giving the state the authority to hold PG&E 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 authorizes the Governor to incorporate Golden State Energy as a nonprofit public benefit corporation to take over ownership and control of PG&E’s assets in the event that the utility fails to emerge from bankruptcy as a transformed entity that is positioned to provide Californians with access to safe, reliable, and affordable service, or if the company attempts to sell its stocks or assets within that proceeding. Although RCRC did not have a position on the legislation, staff watched it closely through the process alongside the PG&E bankruptcy and reorganization proceedings.