California Gov. Gavin Newsom Gavin Newsom Newsom signs law allowing transgender inmates to be placed in prison by their gender identity OVERNIGHT ENERGY: California seeks to sell only electric cars by 2035 | EPA threatens to close New York City office after Trump threats to 'anarchist' cities | House energy package sparks criticism from left and right California seeks to sell only electric cars by 2035 MORE (D) rejected Pacific Gas and Electric’s (PG&E) proposed restructuring plan as it seeks to navigate a historic bankruptcy.

Newsom wrote in a letter to PG&E Chief Executive Officer Bill Johnson William (Bill) Leslie JohnsonPG&E pleads guilty to 84 felony counts of involuntary manslaughter in 2018 Camp Fire The Hill's Campaign Report: Republicans go on the hunt for new convention site Police unions coalition director: Biden 'off the deep end' in calls for reform MORE that the utility behemoth’s restructuring plan fell “woefully short” of California’s requirements. He said that any reorganization of the company would need a better financing plan, a completely new board and the option for Sacramento to take the reins should it fail safety metrics.

“The resolution of this bankruptcy must yield a radically restructured and transformed utility that is responsible and accountable,” he wrote, adding that the proposal does not position the company to “provide safe, reliable and affordable service.”

BREAKING: Governor Gavin Newsom REJECTS PG&E’s reorganization plan, saying it doesn’t comply with terms of a recently passed wildfire liability law.



His Letter to PG&E: pic.twitter.com/qgIsCkbAkT — Ashley Zavala (@ZavalaA) December 14, 2019

Newsom’s support is vital to PG&E’s future – earlier this year the firm declared bankruptcy after being saddled with tens of millions of dollars in liabilities after settling claims for its role in starting several deadly wildfires. PG&E hammered out a restructuring plan, but still needs Newsom to approve it.

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The governor wrote that PG&E’s bankruptcy marks “more than two decades of mismanagement, misconduct, and failed efforts to improve its safety culture."

“It is against this backdrop that compliance with” state law must be measured, he added.

According to a state law that created a $21 billion insurance pool to help firms deal with liabilities from future wildfires, PG&E needs to exit Chapter 11 by June 30 to access any of the funds.

PG&E maintained to The San Francisco Chronicle that its plan “is the best course forward for all stakeholders. We’ve welcomed feedback from all stakeholders ... and will continue to work diligently in the coming days to resolve any issues that may arise.”

Newsom previously warned the company that the state of California could take it over if it does not pull itself out of bankruptcy by mid-2020.